Deutsche Lufthansa (LHA) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong operational and financial performance, with improved punctuality and stability despite ongoing geopolitical and supply chain challenges.

• Strategic initiatives, including the Lufthansa Turnaround Program and ITA Airways integration, are delivering earlier-than-expected financial benefits and expanding codeshare opportunities.

• Passenger numbers reached over 61 million in H1, with capacity up 3.8% year-over-year and significant yield uplift from new premium products.

• Summer operations were robust, with top destinations in the Mediterranean, Korea, Japan, and Argentina.

Financial highlights

• Q2 2025 revenues reached €10.3bn, up 3% year-over-year; adjusted EBIT rose 27% to €871m, with net income more than doubling to €1,012m.

• Revenue for H1 2025 rose 6% year-over-year to €18,449m; Adjusted EBIT improved to €149m from €-163m.

• Adjusted free cash flow for H1 was €1,024m, up 17% year-over-year; net indebtedness reduced by 3% to €5,455m.

• Net debt/EBITDA improved to 1.7x from 2.0x at year-end 2024; group liquidity stood at €11.1bn as of June 30, 2025.

• Fuel costs decreased 14% year-over-year, while staff costs rose 10%.

Outlook and guidance

• Full-year 2025 guidance confirmed: ASK to increase ~4% vs. 2024, adjusted EBIT to significantly rise, and net CAPEX between €2.7–3.3bn.

• Adjusted free cash flow for 2025 anticipated to be roughly in line with previous year; dividend payout policy set at 20–40% of net income.

• 2025 remains a transition year, with fleet modernization and turnaround measures expected to drive further improvements from 2026 onward.

• Macroeconomic and geopolitical uncertainties, fuel prices, and aircraft delivery delays remain key variables.

• Demand volatility persists, especially on the North Atlantic, but favorable fuel and FX trends support the outlook.