The Lufthansa Group finds itself in a period of stark contrast. As the company reports robust fundamental data for 2025, its daily operations are being paralyzed by a pilots’ strike. The industrial action, led by the Vereinigung Cockpit union, began at midnight on Thursday and is set to run through Friday at 23:59. This latest wave of disruption impacts the core Lufthansa brand and its Cargo subsidiary, and for the first time, has also grounded flights at the regional carrier CityLine.
A Dual Challenge: Labor Unrest and Geopolitical Tensions
This marks the second major strike action in recent weeks, following a one-day walkout in mid-February that led to approximately 800 flight cancellations. The central issues remain deadlocked negotiations over a reform of the company pension scheme and union demands for annual pay increases of 3.3%.
Compounding these internal difficulties is ongoing geopolitical instability. The airline has suspended services to Beirut until the end of March, to Tel Aviv until April 2nd, and to Tehran until April 30th. Circumventing closed airspace has resulted in significantly longer flight paths, driving up both fuel consumption and overall operational costs.
Despite these immediate challenges, the company’s financial performance tells a different story. Lufthansa Group posted revenue of €39.6 billion for 2025, with an operating result of €2 billion. The Cargo division was a particular standout, delivering a 29% increase in adjusted EBIT to €324 million, bolstered by strong demand from Asian markets.
Shareholder Returns and Future Guidance
Reflecting this solid performance, the Group’s board has proposed a dividend of €0.33 per share for the past financial year—a 10% increase compared to the previous year. Shareholders will vote on this distribution at the Annual General Meeting scheduled for May 12th.
Management has provided guidance for growth in revenue, earnings, and margin in 2026, though they acknowledge that current disruptions will likely weigh on first-quarter results. Those Q1 figures, to be published on May 6th, will offer the first concrete look at the financial impact of the strikes and route suspensions.
Longer-term, the company’s restructuring program—aimed at contributing €2.5 billion to earnings by 2028—and a planned reduction in the German air traffic tax starting in July 2026 are expected to provide a mid-term tailwind. This, of course, is contingent on a resolution to the current labor dispute.
Technical Pressure on the Share Price
On the markets, Lufthansa shares are feeling the pressure of the operational turmoil. The stock currently trades at €7.86, having lost roughly 8% since the start of the year. This price represents a decline of more than 17% from its 52-week high of €9.50, reached in February. The share price is now trading notably below its 50-day moving average of €8.77, a technical indicator that suggests the short-term trend is downward.
The path forward for Europe’s leading airline group hinges on its ability to reconcile strong underlying finances with the acute pressures of labor relations and an uncertain global landscape.
