European aviation giant Lufthansa Group confirmed its full-year outlook on Thursday after posting profit gains in the second quarter.
The company, which includes Lufthansa, Austrian Airlines, Brussels Airlines, Swiss and ITA Airways, reported an operating profit of €871 million between April and June, marking a 27 percent year-over-year increase.
Overall revenue for the quarter was €10.3 billion, up 3 percent from the previous year, which the group said was boosted by "extraordinary" currency effects and low oil prices. Improved earnings were largely driven by an expanded flight program across its passenger business, its "positive" investment in Italy's ITA Airways and a doubling in the operating result of its logistics business.
"Although the second quarter was again marked by geopolitical crises and economic uncertainties, we are today confirming our positive outlook for the full year," group CEO Carsten Spohr said in a statement.
Spohr pointed to the "regained operational stability of our airlines" after implementing a "turnaround" strategy for its core Lufthansa Airlines brand, but cited aircraft delivery delays and "the disproportionate burden on European airlines due to unilateral EU regulations" as ongoing challenges.
While global demand "remains strong", Lufthansa Group CFO Till Streichert said the group is "closely monitoring macroeconomic developments".
As well as trade tensions and uncertainty linked to US tariffs, Streichert said the tendency of many travelers to book at shorter notice is limiting visibility for the second half of the year. The group also expects "softer" demand growth from its North Atlantic points-of-sale moving into the year's latter half, as well as a drop in demand for U.S.-bound flights from European points-of-sale.
Despite this volatility, Streichert reaffirmed the group's forecast for the full year and expects operating profit to be "significantly higher" than last year's €1.6 billion result, while capacity is expected to increase by around 4 percent.
The group plans to extend the rollout of its new Allegris product – expecting to more than double the number of aircraft featuring the premium cabin by summer 2026 – while the integration of ITA Airways also continues.
From September, ITA Airways guests will be able to store their travel profile in the group's online portal and access its digital customer services. Combined flight bookings between ITA and the rest of the Lufthansa portfolio are also now available for long-haul flights, while combined short- and medium-haul flights have been available since March.