Deutsche Lufthansa (LHA) investor relations material

Executive summary

• Revenue reached a record EUR 11.1 billion in Q2 2026, up 8% year-on-year, driven by strong demand in premium cabins and on Asia routes, despite a 3.3% reduction in seat capacity due to strikes and Middle East disruptions.

• Adjusted EBIT dropped to EUR 383 million in Q2 2026, down 56% year-over-year, mainly due to a EUR 750 million increase in fuel costs and significant strike impacts.

• Cargo and Technik segments delivered robust results, offsetting some passenger airline headwinds, with Logistics up 47% year-over-year.

• Strategic initiatives included accelerated wind-down of Lufthansa CityLine, integration of ITA Airways, and a bid for a minority stake in TAP Air Portugal.

• Investments in premium products and network optimizations contributed to resilience and improved competitiveness.

Financial highlights

• Adjusted EBIT margin was 3.4% in Q2 2026, down from 8.4% the previous year; excluding strike effects, margin would have been 1.3 percentage points higher.

• Net income for Q2 2026 was EUR 123 million, down 88% year-over-year; net loss for H1 2026 was EUR 542 million.

• Adjusted free cash flow was about EUR 1 billion for H1, but Q2 saw -EUR 365 million due to lower profitability and working capital outflows.

• Liquidity stood at EUR 10.7 billion at the end of June 2026, above the target corridor; net debt stable at EUR 8.3 billion.

• Operating cash flow for H1 2026 was EUR 2.3 billion, down EUR 600 million year-on-year.

Outlook and guidance

• Full-year 2026 adjusted EBIT expected between EUR 1.7–2.2 billion, with capacity broadly flat year-on-year.

• Adjusted free cash flow guidance unchanged at around EUR 0.9 billion; net capital expenditure expected at approximately EUR 2.5 billion.

• Key swing factors: jet fuel prices, unit revenue acceleration, operational stability, and cargo demand.

• No further strikes expected in H2; constructive union talks ongoing.

• Dividend payout policy remains at 20–40% of net income.