Lufthansa Group plans dividend increase after solid 2025 performance
The Lufthansa Group announced that its profit increased to €1.96 billion in the 2025 financial year thanks to operational stability and strict financial management.
The company released its financial results for 2025, CE Report quotes Anadolu Agency.
According to the statement, the group made progress in improving its profit target for 2025 following the crisis year, supported by more stable flight operations.
The German company’s key earnings indicator — adjusted earnings before interest and taxes (EBIT) — rose by 19 percent year-on-year, from €1.64 billion to €1.96 billion.
The company’s revenue increased by 5 percent during the same period, reaching a record €39.6 billion.
Cost pressures eased
After the COVID-19 pandemic, improved stability in the flight operations of the group’s main brand, Lufthansa, which had been struggling financially for some time, was one of the main factors behind last year’s profit increase.
In 2024, passenger compensation for flight cancellations and delays amounted to €843 million, while last year this figure decreased by €362 million, easing cost pressures.
However, weak demand and price pressure on transatlantic routes negatively affected the company’s financial results.
Meanwhile, due to tax effects, net profit fell by 3 percent year-on-year to €1.34 billion.
135 million passengers carried
The company plans to increase its dividend per share by 10 percent to 33 euro cents. Based on the year-end closing share price, this corresponds to a dividend yield of about 4 percent.
The group, which includes airlines such as Eurowings, Swiss International Air Lines, Brussels Airlines and Austrian Airlines, announced that it carried a total of 135 million passengers last year. In 2024, the group served 131.3 million passengers.
2026 outlook under geopolitical risks
Lufthansa aims to raise its operational profit margin to between 8 and 10 percent in the period from 2028 to 2030.
However, analysts say that strike actions such as the February 12 walkout by pilots and cabin crew, as well as price pressure on transatlantic routes, could make it harder to reach these targets.
The German company said that uncertainty remains regarding its outlook for 2026 due to geopolitical risks, while it expects approximately 4 percent growth in capacity, revenue and profit margins.
