Lufthansa keeps unit costs stable in Q4 on cost purge
It attributes the performance to efficiency programmes across the group
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[FRANKFURT] Deutsche Lufthansa managed to keep its unit costs stable in the fourth quarter, indicating that CEO Carsten Spohr’s cost-cutting push is beginning to pay off.
Unit costs – a key airline metric measuring the expenses for each seat flown – were stable in the final three months of 2025 compared with the year-ago period, an internal memo seen by Bloomberg News said.
The performance, achieved depite a 10 per cent increase in fees and levies, was credited to the efficiency programmes rolled out across the group.
In the first two quarters of 2025, its unit-cost increases were still running at 3 to 4 per cent year on year.
Spohr is seeking to rein in its expenses at Europe’s largest aviation group by consolidating its administrative functions and eliminating 4,000 back-office jobs by 2030.
He is also shifting more short-haul flying away from Lufthansa’s higher-cost flagship airline to lower-cost units – including Discover Airlines and Lufthansa City Airlines.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
His ambitions have been complicated by aircraft delivery delays and the risk of more labour disruptions – such as the pilot and crew walkouts earlier in February.
The delays have forced the airline to resort to older, less fuel-efficient models.
Lufthansa is set to report full-year earnings on Mar 6. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Near sell-out launches in March boost developer sales to 1,300 units after four slow months
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
