Deutsche Lufthansa AG is optimistic about the future despite an operating loss in the first quarter of 2025. The Group increased its revenue by ten percent year-on-year to €8,1 billion, according to the quarterly report published today. This positive development is driven by continued strong global demand for air travel.
Although the Lufthansa Group reported an operating loss (adjusted EBIT) of EUR 722 million in the first quarter, this represents a significant improvement over the previous year's figure of EUR -849 million. The adjusted EBIT margin also improved from -11,5 percent to -8,9 percent. Meanwhile, the Group result fell to EUR -885 million (previous year: EUR -734 million). Chief Financial Officer Till Streichert emphasized that progress is being made on schedule with internal programs to sustainably improve the earnings situation.
Flight operations with strong start to the year and increased stability
The flight operations of the Lufthansa core company performed particularly well, recording their best operational start to the year in ten years. Despite an expansion of capacity by almost five percent, capacity utilization fell slightly to 78,7 percent. Thanks to moderate growth compared to previous years, the operational stability and punctuality of the passenger airlines improved significantly. At the Frankfurt hub, 20.000 fewer hotel beds had to be booked for stranded passengers in the first quarter than in the same period last year. Direct compensation payments for flight delays and cancellations fell Group-wide by a significant 52 percent to €47 million.
While passenger airlines' revenue increased by six percent to €5,9 billion, operating profit declined slightly to €934 million (previous year: €918 million). This decline is primarily due to general cost increases, particularly in fees from system partners such as air traffic control providers and airports, as well as high cost inflation for maintenance services. Furthermore, the seasonal shift of the Easter travel season, which fell into the first quarter last year, had a negative impact on earnings. Without this effect, passenger airlines would have significantly exceeded their previous year's results.
A particularly positive development was seen on the North Atlantic route. Passenger numbers increased by 7,1 percent, load factors exceeded the previous year's figure, and average yields increased by 6,7 percent. Demand from the United States to Europe showed particularly strong momentum in March, with passenger growth of around 25 percent compared to the same month last year.
Lufthansa Technik and Lufthansa Cargo with record results
The subsidiary Lufthansa Technik achieved record results in the first quarter with adjusted EBIT of 161 million euros, representing an increase of 49 percent over the previous year. High demand for maintenance, overhaul, and repair services contributed significantly to this success. Lufthansa Cargo also continued its positive trend, improving adjusted EBIT by 84 million euros year-on-year to 62 million euros. This was due to an expansion of cargo capacity and increased traffic volumes, accompanied by successful cost management.
Strong cash flow and declining debt
The Group's operating cash flow increased to approximately €1,8 billion in the first quarter (previous year: €1,3 billion), primarily due to seasonal inflows from ticket sales. Adjusted free cash flow improved significantly to €835 million (previous year: €305 million). Net debt was further reduced to €5,3 billion (end of 2024: €5,7 billion), and net pension obligations decreased to €2,2 billion due to interest rate effects. The company's liquidity totaled €2025 billion at the end of March 11,4.
Despite ongoing macroeconomic uncertainties, particularly due to global trade tensions, the Lufthansa Group is optimistic about the upcoming summer and confirms its outlook for 2025 as a whole. Popular destinations in the Mediterranean region, as well as long-haul flights and flights to North America, continue to experience high demand. To counteract potential fluctuations in demand, the company has established a task force that will closely monitor current developments and respond flexibly if necessary. CEO Carsten Spohr reiterated: "Global demand for air travel continues to grow. Despite all the geopolitical uncertainties, we remain on a growth path, are optimistic about the summer, and maintain our positive outlook for 2025."
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