Lufthansa boosted by ‘robust’ demand for flights

European aviation giant Lufthansa Group continues to see “robust” demand for flights, despite geopolitical uncertainty in recent months.

The company, which includes Lufthansa, Austrian Airlines, Brussels Airlines, Swiss and ITA Airways, said revenue rose by 10 per cent year-on-year to €8.1 billion in the first quarter of 2025.

Lufthansa also highlighted that its transatlantic routes had carried more passengers and enjoyed higher average yields in Q1 than during the same quarter of 2024.

Group CEO Carsten Spohr said: “Global demand for air travel continues to grow. Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025.

“Demand continues to be robust for the second quarter. I am pleased that our guests are benefiting from significantly improved punctuality and stability, particularly with our core brand Lufthansa.”

The company added in its results statement that it had carried 7.1 per cent more passengers on North American routes in Q1 compared with the same quarter last year, with average revenue also up by 6.7 per cent over this period.

“Currently, demand in the US sales region continues to rise. In March, Lufthansa Group airlines carried around 25 per cent more passengers from the US to Europe than in the same month last year,” said Lufthansa.

The company expects “another strong summer travel season overall”, particularly to destinations such as Spain, Italy and Greece. Ticket sales for North American flights are also higher than this time last year.

But Lufthansa added that “macroeconomic uncertainties, particularly the trade tensions between the US, EU and other regions, are making it difficult to forecast the coming quarters accurately”.

The group said it had set up a task force to “closely monitor current developments and, if necessary, respond quickly and flexibly to any weakening in demand, for example by adjusting capacity”.

Till Streichert, Lufthansa’s chief financial officer, said: “We are in a period of high volatility. In this environment, it is good news that we are making progress as planned on issues within our control, such as our turnaround programme at Lufthansa Airlines.

“At the same time, we are keeping an eye on market risks. We are well prepared to respond should these materialise.”

Streichert added that the group would benefit from “favourable fuel prices and exchange rates”, which could help to offset the financial impact of any changes in demand.

The group recorded an operating loss of €722 million during the first quarter, an improved performance from Q1 of 2024 when its loss was €849 million.

Revenue from Lufthansa’s passenger airlines rose by 6 per cent year-on-year to €5.9 billion for the quarter, although the division’s operating loss increased “slightly” from €918 million to €934 million, which Lufthansa attributed to Easter falling in the second quarter this year.

The group said that “despite the uncertainties” it was sticking to its forecast that operating profit during 2025 would be “significantly above” last year’s figure of €1.6 billion.