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

[FRANKFURT] Lufthansa posted better-than-expected quarterly profit as strong demand and cost discipline helped cushion the impact from high fuel prices.

Third-quarter earnings rose 6 per cent to 1.4 billion euros (US$1.6 billion) before interest and taxes on an adjusted basis, the group said on Tuesday (Nov 3).

That is slightly better than the average analyst estimate of 1.38 billion euros compiled by Bloomberg. Sales advanced 9 per cent to 12.24 billion euros.

Yields in the group’s airline business rose 7 per cent, which it attributed to strong demand for premium tickets and on the routes to Asia and North America.

Alongside cost management such as lower spending on projects, that helped helped offset a 543 million euros increase in fuel costs in the quarter.

CEO Carsten Spohr has been trying to boost profit across the group, an effort complicated by a string of pilot strikes earlier in 2026 and the Middle East conflict that continues to drive up fuel prices.

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What was meant to be a year of stabilisation has developed into an extended period that is harder to navigate, with Spohr cautioning that 2027 will be “another year of transformation”.

A weak spot has been its flagship airline, where high expenses, crew walkouts and unprofitable short-haul operations are eating into gains achieved on longer flights.

The group is shifting capacity from Lufthansa to lower-cost airlines such as Discover and City Airlines.

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Meanwhile, its cargo and maintenance businesses both helped boost earnings. The cargo unit trebled its operating profit while the maintenance unit’s grew more than 50 per cent in the quarter. 

In October, Lufthansa won a bidding war with Air France-KLM to acquire a minority stake in state-owned Portuguese airline TAP, a sought-after asset that provides access to markets including Latin America.

If approved, the deal would add another airline to the portfolio that already includes Swiss, Austrian Airlines and Brussels Airlines. BLOOMBERG