Lufthansa beats Q3 profit expectations as cost discipline, demand offset higher fuel prices

Lufthansa has reported a stronger-than-anticipated profit for the third quarter, despite high fuel prices and cost pressures. The airline's earnings rose 6% to 1.4 billion euros (US$1.6 billion), ahead of the average analyst estimate of 1.38 billion euros. Sales increased by 9% to 12.24 billion euros. Lufthansa attributed the boost in yields to robust demand for premium tickets and flights to Asia and North America.

However, fuel costs surged by 543 million euros in the quarter. CEO Carsten Spohr aims to boost profits across the group, a task complicated by pilot strikes and the ongoing Middle East conflict, which has driven up fuel prices. Spohr acknowledged that 2027 will likely be another year of transformation. Lufthansa is shifting capacity from its flagship airline to lower-cost airlines, while its cargo and maintenance businesses have also contributed to the earnings growth.

The cargo unit's operating profit tripled while the maintenance unit's grew over 50%. Lufthansa also secured a stake in Portuguese airline TAP, providing access to markets including Latin America.