After a decline in profits: Lufthansa is redlining its core brand

Lufthansa posted a decline in profits in the summer despite strong ticket demand and record sales. Now CEO Carsten Spohr is taking action on the main brand Lufthansa Airlines: A savings program is intended to improve adjusted operating profit (adjusted EBIT) by 1.5 billion euros gross by 2026, as the MDax-listed company announced on Tuesday in Frankfurt. For the current year, Spohr continues to expect an adjusted operating profit of 1.4 to 1.8 billion euros across the group, after capping his annual target for the second time in the summer.

In the third quarter, which was strong in travel, Lufthansa achieved an adjusted operating profit of 1.3 billion euros, nine percent less than a year earlier. Lower ticket prices and increased costs more than offset the increase in sales. The bottom line was that the profit was 1.1 billion euros, eight percent less than the year before. Lufthansa Airlines in particular generated less revenue due to a lack of new aircraft and higher personnel costs. The board therefore wants to shift more of the brand’s flights to flight operations with lower operating costs inside and outside the group and to automate parts of the operation more.