Pedro Goncalves writes:
Shares in Lufthansa rose almost 4% after the German airline reported better-than-expected results for 2025, though the outlook remained clouded by the war in the Middle East.
The company reported adjusted operating profit of €2bn, compared with €1.9bn forecast in a company compiled analyst poll and up from €1.6bn in 2024. The group also posted an operating margin of 4.9%, compared with 4.4% a year earlier.
Germany’s flagship airline warned it faces heightened uncertainty as the conflict in the Middle East continues to unfold, leaving airspace closed in parts of the region and pushing jet fuel prices to a four year high.
“The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains,” Lufthansa chief executive Carsten Spohr said in a statement.
The conflict involving the US, Israel and Iran has caused the biggest disruption to global air traffic since the pandemic.
“Developments in the Middle East and the associated geopolitical consequences for the global economy increase the medium- and long-term forecast uncertainty,” the group said.
“Disruptions to supply chains in the Strait of Hormuz are leading to increased volatility in the oil markets.”
Lufthansa is aiming to raise operating margins to between 8% and 10% between 2028 and 2030, compared with 4.4% in 2024, though labour disputes have complicated efforts to improve profitability. The group faced several strikes by workers, including the most recent on February 12.
“Last year we were able to significantly increase the group’s operating profit and achieved the highest revenue in our history. Our results demonstrate the resilience and stability of the group,” Spohr said.