Lufthansa Faces Profit Decline Despite Record Revenue

The German airline reports a 9% drop in third-quarter profit due to rising costs and competitive pressures, amid plans for a major cost-cutting initiative.

Lufthansa's third-quarter operating profit fell to 1.3 billion euros, down 9% from the previous year, despite achieving the highest quarterly revenue in its history at 10.7 billion euros.
Increased operational and staff costs, along with competition and low yields in the Asia-Pacific market, have significantly impacted the airline's profitability.
CEO Carsten Spohr announced a cost-cutting program aiming to improve operational profit by 1.5 billion euros by 2026, focusing on efficiency and reducing complexity.
The airline group transported approximately 40 million passengers in the third quarter, a 6% increase from 2023, with fleet utilization reaching a record 88% in August.
Lufthansa plans to address capacity constraints by leasing additional aircraft and shifting more flights to subsidiaries with lower operating costs.