Lufthansa Group Reports Record Quarterly Revenue Despite Rising Fuel Costs - Get updated on what's happening in tourism!

Lufthansa Group achieved its highest quarterly revenue on record in the third quarter of 2026, generating €12.2 billion, an increase of 9% compared with the same period last year. Adjusted operating profit rose by 6% to €1.4 billion despite an additional €543 million in fuel expenses. The results reflect strong demand for air travel, higher ticket yields and cost-control measures that helped the airline group offset much of the pressure from rising energy prices.

Demand remained particularly strong for premium travel and long-haul services to Asia and North America. The group's network airlines increased their available seat capacity by 1.6%, marking their first year-on-year capacity expansion of 2026. Growth was concentrated on routes to South America and Africa, alongside selected Asian destinations. Although passenger load factors declined slightly, higher average fares supported revenue growth and demonstrated continued willingness among travellers to pay more for certain international services.

The quarterly performance was also supported by significant improvements in the group's cargo and aircraft maintenance businesses. Lufthansa Cargo more than tripled its operating profit, while Lufthansa Technik increased earnings by over 50%. These contributions helped compensate for higher fuel costs affecting passenger airlines, particularly Lufthansa Airlines. The group nevertheless reported a slightly lower operating margin, illustrating the continuing financial pressure facing European aviation despite robust passenger demand.

Premium Demand Supports Passenger Airlines

The Lufthansa Group's network airlines recorded a 6.8% increase in passenger yields during the third quarter. Despite a 1.3-percentage-point decline in load factor, unit revenue rose by 5.2% compared with the previous year.

Demand for premium tickets was an important driver, particularly on routes connecting Europe with Asia and North America. The figures indicate that higher average ticket revenues were sufficient to compensate for the slightly lower proportion of occupied seats.

Cost management also played a significant role. Unit costs excluding fuel and emissions expenses increased by just 0.5%, remaining below the prevailing inflation rate.

The group attributed this development to lower expenditure on certain fees and charges, reduced project costs, capacity growth and continued automation and digitalisation under the Lufthansa Airlines turnaround programme.

Nevertheless, the network airlines' combined Adjusted EBIT declined by €108 million to €853 million. Fuel expenses increased by more than €400 million, while Lufthansa Airlines continued to carry the financial consequences of strikes earlier in the year, which generated approximately €65 million in additional costs.

SWISS, Austrian Airlines and Brussels Airlines all improved their third-quarter results compared with 2025.

Eurowings Benefits from Strong European Demand

The group's point-to-point business also recorded a positive quarterly development, despite changes to its route network.

Eurowings reduced capacity by 3.5% following the suspension of flights to the Gulf region amid the Middle East conflict. The airline subsequently shifted capacity primarily towards shorter routes serving Southern European destinations.

Unit revenue increased by 10%, supported by demand for premium offerings and additional income from ancillary services.

However, unit costs excluding fuel and emissions expenses rose by 4.8%, partly because of lower capacity, higher personnel expenses and increased airport charges, particularly in Mallorca.

The SunExpress joint venture contributed an equity result of €103 million, €20 million more than in the previous year.

Overall, the Lufthansa Group's point-to-point segment generated Adjusted EBIT of €214 million, an increase of €16 million year-on-year.

Cargo and Maintenance Deliver Strong Earnings

Lufthansa Technik and Lufthansa Cargo were among the strongest contributors to the group's quarterly performance.

Lufthansa Technik increased revenue by 20% to €2.3 billion, largely driven by business with external customers. Adjusted EBIT climbed by 54% to €200 million, while the operating margin improved to 8.6%.

The results reflect sustained demand for aircraft maintenance, repair and overhaul services.

Lufthansa Cargo recorded an even stronger improvement in profitability. Freight volumes increased by 7%, while capacity expanded by 5%, supported by additional cargo space in ITA Airways aircraft.

Cargo yields rose by 22%, benefiting from strong demand amid the disruption caused by the Middle East conflict. Adjusted EBIT reached €162 million, compared with €49 million in the third quarter of 2025. The operating margin increased from 6.0% to 15.6%.

These developments demonstrate the importance of the group's diversified business model, with cargo operations and technical services providing substantial earnings alongside passenger transport.

Full-Year Profit Forecast Refined

Lufthansa Group reported third-quarter net income of €1.3 billion, compared with €966 million a year earlier. The Adjusted EBIT margin stood at 11.5%, slightly below the previous year's 11.9%.

The group's financial position remained stable. At the end of September, available liquidity totalled €11.8 billion, while net debt including pension liabilities declined to €7.3 billion from €8.3 billion at the end of 2025.

For the first nine months of 2026, operating cash flow reached approximately €3.4 billion. Adjusted free cash flow amounted to €1.8 billion, close to the previous year's level.

Looking ahead, Lufthansa Group expects a healthy demand environment in the fourth quarter but continues to face uncertainty surrounding fuel prices and geopolitical developments.

The company now anticipates a full-year fuel bill of €9.3 billion and has refined its 2026 Adjusted EBIT forecast to between €1.7 billion and €2.0 billion.

Chief Financial Officer Till Streichert indicated that the final result within this range would depend on fuel costs, passenger demand and particularly Lufthansa Cargo's fourth-quarter performance.

The group also reported fuel hedging coverage of approximately 86% for its passenger airlines in 2026 and more than 60% for 2027, providing some protection against further price volatility.

For Lufthansa Group, the latest results underline the continuing strength of international travel demand while highlighting the importance of cost discipline and profitable activities beyond passenger aviation.

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