Lufthansa Airlines' (DLAKY.US) performance in 2025 meets expectations, but the situation in the Middle East casts a shadow over the prospects for 2026.

German airline Lufthansa announced on Friday that its performance in the 2025 fiscal year exceeded expectations. The company effectively controlled costs and maximized profits by implementing stricter financial management and optimizing its fleet structure. The German aviation group reported a revenue of 42.5 billion euros (approximately $49.34 billion) in 2025, a 5% year-on-year increase; operating profit was 39.6 billion euros, also achieving a 5% year-on-year growth. At the same time, the company's operating profit margin in 2025 increased from 4.4% in 2024 to 4.9%. The group's core profit indicator, adjusted earnings before interest and taxes (EBIT), reached 1.96 billion euros, a 19% year-on-year increase. Net profit for the period was 1.34 billion euros, a 3% year-on-year decrease. According to market consensus provided by the company, analysts had previously expected an average full-year adjusted EBIT of 1.91 billion euros and revenue of 39.93 billion euros. In terms of operational data, Lufthansa carried 135 million passengers in the full year of 2025, a 3% increase from 2024. The passenger load factor increased slightly from 83.1% in the previous year to 83.2%. Lufthansa aims to restore its operating profit margin to the level of 8%-10% between 2028 and 2030 (4.4% in 2024). However, the company pointed out that the latest round of strikes on February 12 posed a challenge in offsetting profit losses. The company added that due to geopolitical uncertainties, the outlook for 2026 is "uncertain". Lufthansa expects its capacity to grow by 4% in 2026, with revenue and profit margins also expected to increase. Lufthansa also announced its intention to distribute a dividend of 0.33 euros per share, a 10% increase from the previous year.