Lufthansa Q3 Profit Slightly Beats Forecasts as Outlook Strengthens
Lufthansa reported quarterly operating earnings on Thursday that came in slightly above market expectations, while maintaining a positive outlook for the fourth quarter. The airline said it expects demand to strengthen, although weaker bookings on North Atlantic routes continue to weigh on growth potential.
Turnaround Plan and Cost-Cutting Efforts
The company’s latest results follow its pledge to deliver an ambitious turnaround plan aimed at cutting costs and centralizing operations across its multihub network. Lufthansa has also faced challenges in reaching a final agreement with unions to avoid potential strikes and improve profitability.
Despite sector-wide challenges, European airlines have largely avoided major disruptions from the recent decline in transatlantic travel following U.S. President Donald Trump’s 2024 election victory.
Lufthansa had previously warned of soft demand in the transatlantic market during the third quarter but described the decline as a “temporary setback.”
Profit Performance and Market Trends
The airline reported a third-quarter operating profit of €1.33 billion ($1.55 billion), slightly above the €1.32 billion forecast by analysts surveyed by LSEG. However, the result was down 1% compared to last year’s €1.34 billion.
Analysts noted that strong performance in the Latin American market and premium-class bookings helped offset weaker transatlantic traffic. Bernstein analyst Alex Irving emphasized that cost discipline remains crucial to sustaining profitability.
Lufthansa reaffirmed its 2025 guidance, forecasting operating earnings (EBIT) to be significantly higher than last year’s €1.6 billion. The third quarter, which includes the busy summer travel season, is typically the strongest period for European carriers.
CEO Outlook and Operational Challenges
Chief Executive Carsten Spohr said the group remains focused on improving efficiency and completing its turnaround plan.
“Even though we must continue to work intensively on the turnaround of our core business, we can confirm our forecast of a significant earnings improvement in 2025,” Spohr said.
Lufthansa continues to face headwinds from rising costs, fleet complexity, and delivery delays — particularly from Boeing, which recently announced new setbacks for its 777X model. These delays have forced Lufthansa to keep operating older, less fuel-efficient aircraft, slowing its fleet renewal strategy.
As a result, Lufthansa’s share performance has lagged behind European rivals IAG (British Airways) and Air France–KLM. Still, the airline expects twice as many long-haul aircraft deliveries in 2026 and plans to continue reducing overall fleet size to improve efficiency.
