Deutsche Lufthansa (LHA) investor relations material

Strategic overview and business structure

• Largest airline group in Europe by capacity, with 130 million passengers and €38 billion revenue.

• Four-pillar structure: hub airlines, point-to-point airlines, logistics (air freight), and MRO (Lufthansa Technik).

• Focus on core airline business and synergistic units after divesting non-core assets.

• Lufthansa Technik targets €10 billion revenue and 10% EBIT margin by 2030 via geographic expansion, digitization, and defense contracts.

• Cargo division leverages Frankfurt hub, long-term contracts with Chinese e-commerce, and aims to become market #3.

Market positioning and operational strategy

• Maintains market leadership in Germany and strong leisure segment, expanding into tour operations.

• Multi-hub system provides strong connectivity and operational synergies across brands.

• Integration of sales, revenue management, and IT platforms to drive further synergies.

• Fleet renewal underway: 240 new aircraft ordered, aiming for 60%-65% next-gen share by 2030.

• Fleet modernization expected to cut fuel and maintenance costs, boost productivity, and increase yields by 15%.

Financial performance and outlook

• Turnaround program targets €2.5 billion gross earnings impact by 2028, with one-third from revenue and two-thirds from cost reduction.

• Operational stability improved, reducing irregularity costs by one-third in first nine months.

• Q3 unit cost increase limited to 0.5%, but yields declined 5.4% due to weak transatlantic and European demand.

• Q4 outlook positive with stable load factors and improved bookings; full-year 2025 EBIT expected to be over 10% higher than last year.

• Disciplined capacity growth of 4% planned for 2026, focused on intercontinental routes.