Deutsche Lufthansa (LHA) investor relations material

Executive summary

• Q1 2026 revenue rose 8% year-over-year to €8.7 billion, with adjusted EBIT improving by €110 million to -€612 million and net income at -€665 million, both significantly better than Q1 2025.

• Passenger numbers increased 3.3% to 25.1 million, with load factor up 3.6 points to 82.2%, despite disruptions from the Middle East crisis and strikes.

• Strong demand in premium, long-haul, and cargo segments, with network and cost discipline mitigating higher fuel costs and operational disruptions.

• Strategic actions included accelerated fleet renewal, consolidation of German AOCs, and permanent withdrawal of high-cost aircraft.

• Adjusted free cash flow rose 65% to €1.38 billion, and net indebtedness decreased by €1.07 billion to €5.3 billion.

Financial highlights

• Adjusted EBIT margin improved by 1.9 percentage points to -7.0% year-over-year.

• Revenues rose 7.6–8% to €8.7 billion, driven by higher passenger, cargo, and MRO revenues.

• Adjusted free cash flow reached €1.38 billion, up €545 million year-over-year.

• Net financial debt reduced to €5.3 billion, leverage ratio improved to 1.6x, and liquidity stood at €10.3 billion.

• Operating cash flow rose to €2.1 billion, up from €1.8 billion year-over-year.

Outlook and guidance

• Full-year 2026 guidance maintained: adjusted EBIT significantly above 2025, adjusted free cash flow around €0.9 billion, net CapEx around €2.9 billion.

• Fuel cost headwind of €1.7 billion expected for 2026, with 80–83% of passenger airline fuel hedged.

• Capacity for Network and Point-to-Point Airlines expected to rise 0–2% year-over-year.

• Headroom for guidance has tightened due to fuel price escalation and strike costs, but demand resilience and yield-focused steering support confidence in meeting targets.

• Dividend payout of 20–40% of net income planned.