Lufthansa Group posts record $13.6B quarterly revenue

German air carrier Lufthansa Group reported a 6% year-on-year increase in third-quarter operating profit to €1.4 billion ($1.57 billion), as robust passenger demand and strict cost discipline helped offset surging fuel expenses.

Revenue rose 9% compared with the same period last year to €12.2 billion, marking the strongest revenue quarter in the company's history, a press releases read on Tuesday.

The company managed to increase its operating profit despite fuel costs jumping by €543 million year-on-year due to soaring jet fuel prices driven by the conflict in the Middle East.

Net income climbed by approximately €300 million to €1.3 billion, supported by an improved operating result, positive valuation effects and a favorable tax base comparison.

"With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros," said Carsten Spohr, chairman of the executive board and chief executive of Deutsche Lufthansa AG.

"Following the successful turnaround in reliability and customer satisfaction, we must now accelerate the financial turnaround of our core brand through both previously planned and additional measures," Spohr added.

The group's network airlines expanded available seat capacity by 1.6% in the third quarter, with average yields rising 6.8% on strong demand for premium tickets and long-haul routes to North America and Asia.

Unit costs at network airlines, excluding fuel and emissions expenses, increased by only 0.5% year-on-year, held down by administrative fee reductions, project cost cuts and operational automation.

The network airlines segment generated adjusted EBIT of €853 million, down €108 million year-on-year, as Lufthansa Airlines absorbed €65 million in lingering costs from first-half strikes alongside higher fuel bills.

Point-to-point carrier Eurowings posted a 10% increase in unit revenues, lifting its quarterly adjusted EBIT by €16 million to €214 million after reallocating flights from the Gulf to Southern Europe.

Lufthansa Technik's revenue jumped 20% year-on-year to €2.3 billion, driving a 54% surge in operating profit to €200 million on strong external demand for aircraft maintenance services.

Lufthansa Cargo tripled its operating profit to €162 million from €49 million a year earlier, with yields rising 22% as air freight demand remained elevated amid Middle East disruptions.

Lufthansa Chief Financial Officer Till Streichert noted that the group's expected fuel bill for full-year 2026 would rise to €9.3 billion due to geopolitical strains.

The airline group refined its full-year 2026 adjusted EBIT forecast to between €1.7 billion and €2.0 billion, citing passenger fuel hedging ratios of 86% for 2026 and over 60% for 2027.