Lufthansa Group recorded revenue growth and maintained strong demand for air travel in the second quarter of 2026, but significantly higher fuel costs and the effects of strikes placed considerable pressure on profitability.

Group revenue increased by eight percent year on year, from €10.3 billion to €11.1 billion. Adjusted operating profit, or Adjusted EBIT, meanwhile fell from €870 million to €383 million, while the corresponding margin declined from 8.4 to 3.4 percent.

The main reason for the decline in profit was fuel expenditure, which was approximately €750 million higher than a year earlier. Strikes caused an additional burden of at least €150 million. The Group managed to offset part of the higher costs through stronger passenger yields, particularly on Asian routes, where yields increased by more than 13 percent.

Group net income fell from €1 billion in the second quarter of last year to €123 million, while Adjusted free cash flow declined from €138 million to negative €365 million.

“We are looking back on a challenging second quarter, once again marked by multiple geopolitical crises and uncertainties. Despite a further improvement in load factor and a significant increase in yields, we were unable to fully offset the considerable rise in fuel costs,” said Lufthansa Group CEO Carsten Spohr.

He added that strong global demand for air travel, particularly in premium classes, had a positive impact on the results. According to Spohr, investments in products such as Allegris, Swiss Senses and the upgraded FOX service are also beginning to deliver results.

The Group’s network airlines offered three percent less capacity in the second quarter than in the same period last year. The reduction was primarily linked to six strike days in April, as well as the optimization of short-haul operations, including the removal of Lufthansa CityLine flight operations from the schedule.

Despite lower capacity, the passenger load factor edged up to 81.6 percent, while unit revenues increased by 6.4 percent year on year. Demand was strongest in the premium segment and on Asian routes.

Fuel costs at the network airlines increased by more than €600 million, primarily due to the rise in kerosene prices linked to the conflict in the Middle East. Their Adjusted EBIT amounted to €137 million, which was €490 million lower than in the same period last year.

The result was also affected by a weaker equity contribution, including a negative foreign exchange valuation effect related to lease liabilities at ITA Airways.

Eurowings reduced its capacity by six percent during the second quarter, while unit revenues rose by 9.4 percent due to strong demand in the European market.

Flights to the Gulf region were temporarily suspended because of the crisis in the Middle East, while additional capacity was redirected to Mediterranean destinations.

Adjusted EBIT in the point-to-point airlines segment fell by €101 million to negative €37 million. Fuel costs in the segment increased by €71 million, while additional expenses were caused by aircraft maintenance and preparations for the introduction of the Boeing 737-8 MAX into the Eurowings fleet.

Unlike the passenger airlines, Lufthansa Cargo continued to improve its business performance. Capacity increased by two percent, partly due to the inclusion of belly cargo capacity on ITA Airways passenger aircraft.

Demand for air freight remained strong and yields increased by 27 percent. Lufthansa Cargo recorded an Adjusted EBIT of €116 million, compared with €73 million a year earlier.

Lufthansa Technik also recorded revenue growth. Revenue increased by 11 percent to €2.2 billion, while revenue from external customers rose by 23 percent. Adjusted EBIT amounted to €157 million, slightly above the previous year’s €149 million.

Lufthansa Group’s operating cash flow in the first six months of 2026 fell by approximately €600 million to around €2.3 billion. Adjusted free cash flow in the first half amounted to €1 billion and remained broadly in line with the previous year.

Net investments amounted to €1 billion and were mainly related to final payments for eight delivered aircraft and advance payments for future deliveries.

At the end of June, net financial debt, including net pension obligations, stood at €8.3 billion, while the Group had total available liquidity of €10.7 billion. Both figures remained at the level recorded at the end of 2025.

“The second quarter was marked by exceptionally high fuel costs and heightened geopolitical uncertainty. Nevertheless, thanks to robust demand, rising yields and the strong performance of Lufthansa Cargo, we were able to achieve a positive result,” said Deutsche Lufthansa Chief Financial Officer Till Streichert.

Due to volatile kerosene prices and shorter booking cycles, Lufthansa Group introduced an earnings range for the full year 2026.

The Group now expects Adjusted EBIT of between €1.7 billion and €2.2 billion. The upper end of the range would still represent a result significantly above the previous year.

Total capacity in 2026 is expected to remain in line with the previous year, while the forecast for Adjusted free cash flow of approximately €900 million remains unchanged.

Further results will primarily depend on the development of fuel costs, unit revenues, the operational stability of flight operations and conditions in the air freight market.