BERLIN

German air carrier Lufthansa Group reported on Friday a 5% surge in profits for last year, totaling €1.96 billion ($2.26 billion).

The airline’s main earnings indicator, adjusted earnings before interest and taxes (EBIT), climbed 19% year-on-year to $2.26 billion.

Its revenue increased 5% to $42.8 billion over the same period.

Lufthansa Airlines’ operational stability last year, which had been struggling for some time after the pandemic, was the key driver of the profit increase, the company said.

Compensations paid to passengers over cancellations and delays fell by $418.9 million last year, easing cost pressures, while weak demand and price pressures on transatlantic routes impacted some of the gains.

Lufthansa’s net profit fell 3% year-on-year to $1.5 billion due to tax effects.

The firm plans to raise its dividend per share by 10% to $0.38, making up a dividend yield of 4% based on the year-end closing share price.

The group, which also includes Eurowings, Swiss, Brussels, and Austrian Airlines, said it carried a total of 135 million passengers in 2025, up from 131.3 million in 2024.

Lutfhansa aims to increase its profit margin from 8-10% in 2028-2030.

Analysts say worker strikes like the pilots and the cabin crew did on Feb. 12, as well as price pressures on transatlantic routes, will make it hard to reach these targets.

The firm said the outlook for this year remains uncertain amid geopolitical uncertainties.

Lufthansa expects a 4% growth in capacity, revenue, and profit margin in 2026.

*Writing by Emir Yildirim in Istanbul