FRANKFURT- Lufthansa (LH), Europe’s largest airline group, claims the core Lufthansa brand loss €274 million in the first half of 2025, dragging down overall group profits despite a €149 million gain for Lufthansa Group.
This financial strain fuels tense pilot negotiations over pensions, with strikes looming. Executives argue the losses prevent funding for dozens of new long-haul jets on order, highlighting deeper operational challenges.
Photo: By Julian Herzog, CC BY 4.0, https://commons.wikimedia.org/w/index.php?curid=39172725Lufthansa €274 million Loss
Lufthansa Group reported €149 million in profit for the first half of 2025. However, the core Lufthansa brand recorded a €274 million loss during the same period. The broader Lufthansa division, including CityLine, City Airlines, Discover, and Air Dolomiti, posted a €307 million deficit.
CEO Jens Ritter emphasized the severity, stating that without structural changes, Lufthansa Airlines faces no future prospects.
He added that current finances prevent affording new long-haul aircraft deliveries expected in coming years. Ritter dismissed claims of manipulated accounting, noting that the core brand remains the group’s largest and most vital component.
Group CEO Carsten Spohr reinforced this view, pointing to Lufthansa’s cost disadvantages that halt growth.
He warned that subsidiaries like Eurowings, Lufthansa Cargo, and Lufthansa Technik, collectively dubbed the “Billionaires Club” for their €1 billion profits, cannot offset the core airline’s issues.
Spohr stated that even acquisitions like ITA or strong performers like SWISS offer no salvation if Lufthansa Airlines fails.
According to OMAAT, this tactic mirrors common union negotiation strategies where management cites poverty to resist labor cost hikes. Yet the underlying truth persists: while the group profits, the flagship carrier bleeds money amid Europe’s tough aviation economics.
Photo: LufthansaFleet Renewal Delays
Lufthansa’s long-haul fleet renewal hinges on the Boeing 777X, now delayed by about seven years. This setback disrupts planned upgrades and increases maintenance costs for aging aircraft.
The rollout of the new Allegris cabin concept has faltered. Years of delays plague implementation, forcing Lufthansa to ground a dozen new Boeing 787 Dreamliners due to certification failures for the cabins.
Management faces unpredictable external factors like the 777X issues. Internal decisions, however, draw scrutiny. The Allegris design incorporates seats from three manufacturers, complicating production and maintenance.
SWISS A330s require added weights for first-class balance, while 747-8s will mix two business-class seat types.
These choices elevate complexity without clear quality gains. The average business-class product lacks direct aisle access on most long-haul flights, relying on outdated configurations.
Photo: By Aero Icarus from Zürich, Switzerland – Lufthansa Airbus A380-841; D-AIMC@FRA;06.07.2011/603bi, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=26715895Strategic Shifts
Lufthansa once ranked among Europe’s top carriers for quality and reliability. Recent years show a decline, with focus shifting from core services to cost-cutting subsidiaries.
CEO Spohr prioritizes new entities to bypass rigid European labor rules. This approach starves the mainline operation of resources, eroding competitiveness.
In contrast, Air France has advanced passenger experience and efficiency through targeted investments. British Airways also progresses despite challenges, outpacing Lufthansa’s stagnation.
Lufthansa’s top executives retain positions and compensation despite these outcomes. Management frames issues as external forces, distancing themselves from accountability.
Munich Airport. Photo: LufthansaFuture Outlook
Pilots demand better pensions amid rising costs. Management counters with unprofitability claims, tying them to stalled fleet investments.
Self-induced problems, from cabin rollout mishaps to subsidiary proliferation, fuel losses more than external shocks. Without reforms, growth stalls, risking broader group stability.
Lufthansa’s evolution lags its peers, diminishing its legacy as a premium airline. Structural fixes demand urgent action to restore viability.
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Lufthansa Pilots Threaten Strike in Germany Over Pension Dispute
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