Lufthansa Looks to Add Longhaul Flights as Iran Upends Rivals
(Bloomberg) — Deutsche Lufthansa AG is considering more capacity on routes to Asia and Africa amid growing demand on longhaul routes, highlighting how the war in Iran has upended passengers flows that would previously have been served by Middle Eastern carriers.
Europe’s largest aviation group is studying additional frequencies on routes to and from Asia and Africa, such as Singapore, India, China and South Africa, it said in a statement Friday. At the same time, Lufthansa cautioned that the conflict has injected uncertainty into any outlook.
The group expects 2026 earnings to again be “significantly above” last year’s and sales to rise, it said Friday. However, Lufthansa pointed pointed to higher volatility in oil markets due to disruptions to supply chains in the Strait of Hormuz.
Global aviation has been shaken up since last week’s hostilities began, forcing carriers like Emirates and Qatar Airways to effectively suspend operations. That’s changed the dynamic for longhaul services, with Asian carriers and European airlines like Lufthansa set to benefit after long seeing the Persian-Gulf rivals siphon off business via their Middle Eastern hubs.
The geopolitical tensions come as Lufthansa Chief Executive Officer Carsten Spohr is pushing to improve the group’s efficiency in a crowded European market by bundling some administrative functions and cutting 4,000 administrative jobs by 2030.
In 2025, group adjusted earnings before interest and tax rose to €2 billion, above the average €1.85 billion analyst estimate compiled by Bloomberg. Revenue rose to 39.6 billion euros, in line with expectations.
The group’s passenger airlines, which include Austrian Airlines, Brussels and Swiss, generated an operating profit of €1.1 billion euros in 2025, a 4% increase compared to the previous year.
The Lufthansa Airlines turnaround showed progress,with the cmopany predicting a cumulative gross earnings effect of around €1.5 billion euros this year, rising to €2.5 billion euros by 2028. Unit costs are expected to be limited to half the inflation rate.
One main driver is the modernization of the group’s fleet — which will reach its peak this year and next — with almost weekly deliveries of aircraft such as the Boeing Co. 787. Spohr is also moving short-haul flying to lower-cost units such as Discover and Lufthansa City Airlines, where crew costs are as much as 40% lower than at the flagship carrier.
Besides the flight suspensions in the Middle East, Lufthansa also had to cancel 800 flights in February during a one-day strike by pilots and cabin crew in response to stalled contract negotiations. A recent ballot vote by a regional carrier signaled there may be more disruption on the horizon.
Beyond passenger flights, the group also operates a cargo unit and maintenance subsidiary Lufthansa Technik. Both units are expected to see “a clear increase” in revenue in 2026 due to continued strong demand in their markets.
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