Q2 2026 Deutsche Lufthansa AG Earnings Call Transcript
Key Points
- Revenue increased by 8% year-on-year to EUR11.1 billion, a new record for the second quarter, driven by strong demand across all airlines.
- Premium cabin demand remains robust, with yields up 7% year-on-year, and Asia routes saw a 13% increase in unit revenue despite airspace closures.
- Lufthansa Cargo delivered a strong quarter with adjusted EBIT up EUR42 million to EUR160 million, benefiting from Middle East disruptions and AI-driven demand for server equipment.
- The integration of ITA Airways is progressing well, with synergies on track to reach EUR450 million by 2028, and the acquisition of an additional 49% stake is planned to close early next year.
- The Lufthansa Airlines turnaround program is on track, with a cumulative gross EBIT effect of at least EUR1.5 billion expected by year-end, and the fleet modernization is advancing with new technology share up to 26%.
- The company maintains a strong balance sheet with liquidity of EUR10.7 billion, above the target corridor, and investment-grade ratings from all major agencies.
- Fuel hedging strategy is effective, with a positive hedge result of about EUR1.5 billion expected for the full year, and the company is adapting its approach to improve effectiveness.
- Adjusted EBIT declined by almost EUR500 million in Q2 to EUR883 million, impacted by a EUR750 million increase in fuel costs and strike-related disruptions.
- Repeated strikes by cabin and cockpit unions cost at least EUR150 million, and the company faces ongoing labor negotiations that could impact operations.
- Aircraft delivery delays continue, with only 6 of 11 planned aircraft received in Q2 and full-year deliveries now expected at 41 versus 45, affecting fleet renewal and capacity growth.
- The company reduced capacity by 3.3% due to Middle East cancellations and route discontinuations, including the accelerated wind-down of Lufthansa City Line, which incurred EUR180 million in full-year costs.
- Eurowings and the point-to-point segment reported a break-even result, with a EUR37 million loss including SunExpress, due to higher fuel costs and upfront investments for the Boeing 737 introduction.
- The full-year guidance was adjusted to a range of EUR1.7-2.2 billion, reflecting increased uncertainty from fuel price volatility and shorter booking cycles, with capacity now expected to be broadly flat.
- Lufthansa Technik faces short-term challenges from reduced airline capacity, leading to lower demand for MRO services and supply chain shortages for engines and spare parts.
Good day and thank you for standing by. Welcome to the Lufthansa Group Q2 2026 results analyst call.
(Operator Instructions)
Please be advised, today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Mark Nettesheim. Please go ahead.
Thank you very much. And also from my side, welcome, ladies and gentlemen, to the presentation of our second quarter results 2026. With me on the call today are our CEO, Carsten Spohr; and our CFO, Till Streichert, and they will both present our results for the past quarter and discuss our commercial outlook for the remaining six months of the year. And as mentioned afterwards, you have the opportunity to ask two questions so that everybody can participate in the Q&A session. Thanks a lot in advance.
And with that, Carsten, over to you.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
