Deutsche Lufthansa (LHA) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw revenue rise to €8.1bn, up 10% year-over-year, with robust demand, improved operational stability, and record sales, though earnings were impacted by the Easter shift and macroeconomic volatility.

• Adjusted EBIT improved 15% to €-722m, but net income declined to €-885m due to cost headwinds and one-off effects.

• Customer satisfaction and operational KPIs improved, with network stability and service center accessibility both up versus prior year.

Financial highlights

• Group revenue reached €8,127m (+10% year-over-year); Adjusted EBIT improved by €127m to €-722m; Adjusted EBIT margin at -8.9%.

• Adjusted free cash flow surged 174% to €835m, driven by improved earnings and lower net investments.

• Net debt decreased by 8% to €5.3bn, and net debt/EBITDA leverage improved to 1.7x.

• Operating expenses rose 5.5–6%, mainly due to higher material, staff, and fee costs.

• Net loss widened to €-885m (from €-734m year-over-year); EPS: €-0.74.

Outlook and guidance

• Full-year 2025 guidance reaffirmed, expecting significant Adjusted EBIT growth and stable adjusted free cash flow; ASK to increase ~4% vs. 2024.

• Net capital expenditure forecast at €2.7–3.3bn; dividend payout policy remains at 20–40% of net income.

• Q2 bookings robust, but Q3 visibility limited, especially on North Atlantic routes due to US market uncertainty.

• Fuel bill for 2025 projected at €7.3bn, €600m below previous guidance, with 81–82% of fuel requirements hedged.

• Cost inflation anticipated to persist, with higher CASK in Q2, normalizing in H2 as turnaround measures ramp up.