Lufthansa Group's Revenue Growth Outlook for Rest of 2025
By:
Pilotcenter.net
Lufthansa Group, the Germany-based airline giant, has recently unveiled its financial report for the first quarter of 2025, showing an upward trend in revenues and a positive outlook for the rest of the year. With a revenue increase of 10% in 1Q25 compared to the same period in 2024, the carrier saw its earnings climb to €8.1 billion, up from €7.4 billion the year before. The company's operating loss (adjusted EBIT) also saw a significant improvement, narrowing down to €722 million from €849 million in the previous year, resulting in an enhanced adjusted EBIT margin of -8.9%.
Despite facing a slight decline in the operating result of its passenger airlines, the Lufthansa Group remains optimistic, crediting the rise in yields to consistent high demand. Operating cash flow spiked to approximately €1.8 billion, a significant increase from the previous year, mainly attributed to improved working capital from heightened ticket sales.
Additionally, the Group's net debt decreased, balancing at €5.3 billion compared to €5.7 billion at the end of 2024. These positive financial indicators have paved the way for a stronger balance sheet and increased liquidity, with the company now holding total liquidity of €11.4 billion as of March 2025.
Carsten Spohr, the Chairman of the Executive Board and CEO of Deutsche Lufthansa, expressed optimism in the face of global uncertainties, emphasizing the company's growth trajectory and the continued rise in global air travel demand. Looking ahead, the Group anticipates a robust summer season and remains confident in surpassing the previous year's financial performance.
Despite potential market risks due to geopolitical tensions and economic uncertainties, the Group remains vigilant and adaptable, leveraging favorable fuel prices and exchange rates to mitigate financial impacts. With a dedicated focus on operational excellence and customer satisfaction, Lufthansa Group aims to soar above challenges and achieve stellar results for the year ahead.
