Lufthansa Stock Gains On Positive FY26 Outlook, Despite Weak FY25 Net Profit

Core Viewpoint - Deutsche Lufthansa AG projects a significantly higher adjusted EBIT for fiscal 2026, despite a decline in net profit for fiscal 2025, driven by increased traffic, capacity, and load factor [1][2]. Financial Performance - In fiscal 2025, Lufthansa's net profit was 1.34 billion euros, a decrease of 3 percent from 1.38 billion euros in the previous year [3]. - Adjusted EBIT rose 19 percent year-over-year to 1.96 billion euros, with an adjusted EBIT margin of 4.9 percent, up 0.5 percentage points from the previous year [4]. - Total revenue for fiscal 2025 increased by 5 percent to 39.60 billion euros, compared to 37.58 billion euros in the prior year [5]. Revenue Breakdown - Traffic revenue reached 32.33 billion euros, marking a 3 percent increase from the previous year [5]. - Passenger Airlines revenue grew by 3 percent year-over-year to 30.58 billion euros [5]. - Logistics revenue increased by 4 percent to 3.40 billion euros, while MRO revenue climbed 12 percent to 8.05 billion euros [5]. Operational Metrics - The company carried 135.04 million passengers in fiscal 2025, reflecting a 3 percent increase from the previous year [5]. - Available seat-kilometres and revenue seat-kilometres both rose by 4 percent to 338.55 billion and 281.77 billion, respectively [6]. - The passenger load factor improved by 0.1 percentage point to 83.2 percent [6]. Future Outlook - Lufthansa anticipates further capacity and revenue growth, with significantly higher adjusted EBIT projected for fiscal 2026 [2]. - The company aims to achieve an adjusted EBIT margin of between 8 and 10 percent from 2028 to 2030, as per its mid-term financial targets [3].