Lufthansa Aircraft
STRATEGIC ANALYSIS 2025

Lufthansa

Europe's Leading Airline
Through Transformation & Innovation

131.3m Passengers
€37.6bn Revenue
70+ Years Heritage

EXECUTIVE OVERVIEW

Strategic Framework

01

Market Position & Heritage

Europe's largest airline group with 70+ years of aviation excellence, commanding 131.3 million passengers and €37.6 billion revenue in 2024.

02

Financial Performance 2024/25

Record revenue growth amid operational transformation, with €37.6 billion revenue (+6%) and strong Q3 2025 performance demonstrating resilience.

03

Strategic Transformation

Turnaround strategy focused on efficiency, digitalization, and profitability with 4,000 job cuts by 2030 and 8-10% EBIT margin target by 2028.

04

Business Segments

Diversified revenue streams across passenger, cargo, MRO, and services with strong performance in all business units and strategic synergies.

Future Outlook

Sustainable growth and competitive positioning in European aviation

8-10%
EBIT Margin Target 2028
Network
CHAPTER ONE

Market Position
& Heritage

Europe's largest airline group with 70+ years of aviation excellence and global connectivity

131.3m
Passengers 2024
83.1%
Load Factor

MARKET POSITION

Europe's Leading Aviation Group

Lufthansa has solidified its position as Europe's largest airline group through strategic diversification and operational excellence

Passenger Growth Trajectory

€37.6bn 2024

Record revenue achieved in 2024, demonstrating strong recovery and growth

+6% vs 2023, +10% Q1 2025

Market Leadership Indicators

Europe's Largest
Leading airline group by revenue and passengers
Star Alliance Leadership
Founding member and largest European partner

Source: Lufthansa Group Financial Reports

NETWORK STRATEGY

Multi-Hub Strategy & Global Network

Strategic diversification across multiple European hubs and global expansion

Hub Distribution Strategy

50%+
Fleet Outside Germany
5
Network Airlines
90%
ITA Stake Target
Frankfurt & Munich
Primary German hubs
Vienna, Brussels, Zurich
Secondary hubs
Rome (ITA)
Expanding presence

Star Alliance Leadership

Founding member and largest European partner in world's leading airline alliance

26
Member Airlines
1,300+
Destinations

Network Airlines Portfolio

Lufthansa Classic

Core brand focusing on high-margin intercontinental business with new Allegris product and comprehensive fleet modernization.

SWISS

Premium positioning from Zurich hub, strong premium demand and international connectivity.

Austrian Airlines

Vienna-based operations, strong Central & Eastern European network and premium service focus.

Strategic Acquisitions

ITA Airways (41% → 90%)
Expanding Italian market presence and Mediterranean connectivity
Brussels Airlines
Key African routes and European network complementarity
Financial
CHAPTER TWO

Financial
Performance
2024/25

Record revenue growth amid operational transformation and cost discipline

€37.6bn
Record Revenue 2024
+32%
Net Income Growth

FINANCIAL RESULTS

Revenue & Profitability Recovery

Strong financial performance with record revenues and improving profitability trajectory

€37.6bn
Revenue 2024
+6%
€1.6bn
Adj. EBIT 2024
Turnaround
11.9%
Q3 2025 Margin
Q3 Performance

Quarterly Performance Trajectory

Key Performance Drivers

1
Record Q3 Revenue
€11.2bn (+4% YoY) in Q3 2025
2
Nine-Month Profit Growth
Net income €1.09bn (+32% vs prior year)
3
Operational Efficiency
Cost discipline and load factor improvements

Q3 2025 Highlights

€1.3bn
Adjusted EBIT
Flat YoY

Source: Lufthansa Group Financial Reports

CAPITAL ALLOCATION

Cash Flow & Capital Discipline

Strong cash generation supporting fleet modernization and transformation investments

Cash Flow Performance

€818m
Q3 2025 Adj. FCF
6x vs Q3 2024
2025 Target €1.6bn+
2028-2030 Target €2.5bn+
Liquidity Buffer €8-10bn

Fleet Investment Program

230+
New Aircraft by 2030
Including 100 long-haul
Next Gen Fleet
65% of long-haul fleet by 2030 (vs 23% in 2025)
Fuel Efficiency
Up to 30% more fuel-efficient than predecessors

Capital Allocation Priorities

Fleet Modernization
Allegris product and new aircraft deliveries
Debt Reduction
Maintaining investment-grade rating
Strategy
CHAPTER THREE

Strategic
Transformation

Turnaround strategy focused on efficiency, digitalization, and profitability

8-10%
EBIT Margin Target
4,000
Job Cuts by 2030

TRANSFORMATION

Next Level Strategy & Cost Reduction

Comprehensive restructuring program to achieve industry-leading profitability by 2028

Financial Targets 2028-2030

8-10%
Adjusted EBIT Margin
vs. 4.4% in 2024
Adjusted ROCE 15-20%
Return on capital employed target
Annual Adj. FCF €2.5bn+
Sustainable cash generation

Cost Reduction Program

€300m
Annual Cost Savings
From restructuring program
One-time Restructuring Costs €400m
Target Completion 2030

Workforce Transformation

4,000
Job Cuts by 2030
Primarily administrative roles
Focus Areas
Administrative roles, not operational
Geographic Concentration
Majority in Germany

INNOVATION

Fleet Modernization & Allegris Product

Comprehensive fleet renewal with next-generation aircraft and premium cabin experience

Fleet Renewal Program

230+
New Aircraft by 2030
100
Long-Haul Aircraft
Fuel Efficiency
Up to 30% more fuel-efficient than predecessors
Next Gen Share
65% of long-haul fleet by 2030 (vs 23% in 2025)

Aircraft Types

Boeing 777-9 Next Gen
Airbus A350 Efficient
Boeing 787-9 Modern

Allegris Long-Haul Product

New
Cabin Concept
For all travel classes
Innovative Lighting
Biorhythm-adaptive lighting concept
Enhanced Comfort
Premium seating across all classes
Connectivity
Enhanced in-flight entertainment and WiFi

Sustainability Technology

AeroSHARK
Surface technology mimicking shark skin, ~1% fuel reduction
Lightweight Equipment
Composite materials reducing aircraft weight

Fleet Standardization

Reducing aircraft types from 13 to 9 for operational efficiency

60
New aircraft by end 2026

DIGITALIZATION

Digital Transformation & AI Integration

Leveraging artificial intelligence and digitalization to drive efficiency and enhance customer experience

AI-Driven Efficiency

AI
Artificial Intelligence
Driving transformation across operations
Process Automation
AI-driven efficiency in administrative processes and customer service
Predictive Maintenance
Enhanced aircraft maintenance scheduling and optimization

Digital Initiatives

Automation
Reducing manual processes across all business units
Cloud Infrastructure
Centralized data and scalable digital platforms
Mobile Experience
Enhanced app and digital touchpoints for customers

Organizational Restructuring

1
Group Function Boards

Centralized control in finance, HR, technology, and hub operations across all airlines

2
Network Management Centralization

Short- and medium-haul network coordination across all hub airlines for optimization

3
Airline Autonomy

Retention of flight operations and customer-facing elements in domestic markets

Operational Efficiency

Flight Cancellations 1%
Customer Satisfaction Increased
Operational Stability Improved

Digital Synergies

Enhanced coordination and digitalization across group airlines

Integration
Seamless customer experience and operational efficiency
Business
CHAPTER FOUR

Business
Segments

Diversified revenue streams across passenger, cargo, MRO, and services

€3.26bn
Cargo Revenue
€635m
MRO EBIT

BUSINESS SEGMENTS

Passenger Airlines & Network Strategy

Multi-brand strategy serving all market segments with Europe's most comprehensive network

Network Airlines Performance

€27.6bn
Passenger Revenue 2024
Network Airlines + Regional
Passengers (Network Airlines) 85.8m
Passengers (Regional Airlines) 45.5m
Load Factor 82.6%

Hub Strategy

Frankfurt (FRA)
Primary global hub - 69.5m passengers (2024)
Munich (MUC)
Secondary hub - 41.6m passengers (2024)
Brussels, Vienna, Zurich
Multi-hub network across Europe

Multi-Brand Portfolio

1
Lufthansa Passage

Premium full-service carrier, core brand with global network

2
SWISS

Premium quality carrier serving Switzerland and international markets

3
Austrian Airlines

Central & Eastern European market leader

4
Eurowings

European point-to-point low-cost carrier

5
Discover Airlines

Leisure travel specialist for holiday destinations

Network Expansion 2025

New routes to India, North America, and expansion of tourist destinations

6 New A350s
Added to long-haul fleet in 2025

BUSINESS SEGMENTS

Lufthansa Cargo

Leading global air cargo carrier with specialized logistics solutions and modern fleet

Financial Performance

€3.26bn
Revenue 2024
9% of Group revenue
Adjusted EBIT 2024 €414m
EBIT Q1-Q3 2025 €306m
Global Market Position Top 5

Fleet Modernization

Boeing 777F
Modern fuel-efficient freighter aircraft
Sustainability Focus
Investment in AeroSHARK fuel-saving technology
Capacity Optimization
Strategic belly capacity utilization on passenger routes

Global Network & Hubs

1
Frankfurt Hub

Primary global cargo hub with dedicated freighter operations

2
Global Destinations

Serving key cargo markets worldwide

3
Intermodal Solutions

Seamless connection with road feeder services

Specialized Services

General Cargo
Standard freight services
Cool
Temperature-controlled
td.flash
Express delivery
Live
Live animal transport

Market Outlook

Stable demand expected for 2025 with gradual capacity normalization

Resilient
Performance despite market volatility

BUSINESS SEGMENTS

MRO & Diversified Services

Leading aircraft maintenance, repair, and overhaul services with comprehensive solutions

Lufthansa Technik

€635m
Adjusted EBIT 2024
#1 Global MRO Market Share
Revenue 2024 €6.8bn
Employees 21,000+
Global Locations ~50

Catering Services (LSG Group)

Revenue 2024 €2.6bn
Global Market Position Leading
Airline Customers 300+

Technik Service Portfolio

Base Maintenance
Heavy checks and modifications
Engine Services
Comprehensive engine MRO
Component Services
Repair and overhaul
Completion
VIP and special mission

Digital Solutions

Condition Analytics
Predictive maintenance technology
Digital Fleet Solutions
Cloud-based operational support
AI Integration
Automated inspection and analysis

Market Position

Global leader in aircraft maintenance with strong order backlog

Future-Ready
For next-generation aircraft
Future
CHAPTER FIVE

Future
Outlook

Sustainability leadership and competitive positioning in a transforming aviation landscape

2050
Net Zero Target
2030
CO₂ Neutral by 2050

FUTURE OUTLOOK

Sustainability & Competitive Positioning

Leading aviation's green transformation while strengthening market leadership

Sustainability Roadmap

Net Zero 2050
Climate-Neutral Aviation
Science-based targets validated
2030
-50% Net CO₂
vs. 2019 baseline
2035
-65% Net CO₂
vs. 2019 baseline
2050
Net Zero
Complete decarbonization

Green Technologies

SAF (Sustainable Aviation Fuel)
10% usage target by 2030
Hydrogen Technology
Partnership with Deutsche Aircraft
AeroSHARK
Fuel-saving surface technology

Competitive Advantages

1
Market Leadership

Europe's largest airline group by revenue and passengers

2
Multi-Hub Network

Unparalleled European connectivity and global reach

3
Diversified Portfolio

Balanced revenue streams across passenger, cargo, MRO, and catering

4
Digital Innovation

AI integration and operational excellence initiatives

Strategic Outlook 2025+

Revenue Target €40bn+
Fleet Modernization Ongoing
Sustainability Investment €2.5bn+

Transformation Success

From crisis to strength with improved efficiency and competitiveness

Ready for Takeoff
Into a sustainable future
Lufthansa Future
LUFTHANSA GROUP

Ready for
Takeoff

Europe's leading airline group, transforming aviation through innovation, sustainability, and operational excellence

131.3m
Passengers 2024
€37.6bn
Group Revenue
70+
Years of Excellence

Sources: Lufthansa Group Annual Report 2024, Q3 2025 Results, Company Presentations