Lufthansa shares soar after earnings top estimates

31/10/2025 07:40 AST

Shares in Lufthansa soared Thursday after the German airline giant reported better-than-expected earnings and said it believed 2025 was a "turning point" after a turbulent period.

Net profit from July to September dropped 12 percent to 966 million euros ($1.1 billion) from the same quarter last year, with the group pointing to weaker demand on transatlantic routes and fierce competition in Europe. But this was above analyst expectations, and Lufthansa's shares jumped around four percent in morning trade in Frankfurt.

Lufthansa - which operates Eurowings, Austrian, Swiss and Brussels Airlines and has acquired a stake in Italy's ITA - saw profits tumble in 2024 due to walkouts and aircraft delivery delays. This prompted the group to launch a turnaround program, and it last month announced plans to cut 4,000 jobs, mainly administrative roles in Germany. But CEO Carsten Spohr said the picture was now improving due to a pick-up in aircraft deliveries as well as "strict cost management and numerous efficiency measures".

"2025 marks a positive turning point," he said in a statement, vowing to "continue to work intensively" on turning around the business. Lufthansa, Europe's biggest airline group in terms of sales, maintained its outlook for the year, expecting operating profit significantly above last year's figure of ?1.6 billion. Profits were pulled down in the third quarter due to a slowdown on lucrative transatlantic routes.

Lufthansa had already forecast a slowdown on these routes earlier this year, amid a reluctance among Europeans to travel to the United States since the return of US President Donald Trump to the White House. Fiere competition in Europe and rising costs had also hit the results. Revenues nevertheless rose four percent in the third quarter to to ?11.2 billion, while 42 million passengers flew with Lufthansa airlines, up from 40 million a year earlier.

AFP