Lufthansa Secures Labour Truce as Fuel Bill and Strike Costs Halve Quarterly Profit
Published on 08/17/2026 at 03:41 | Redaktion boerse-global.de
The summer travel season may yet avoid the disruption that has repeatedly grounded Lufthansa's schedule in recent years. The German carrier and pilots' union Vereinigung Cockpit have agreed on a framework for binding arbitration and mediation, covering the core Lufthansa airline, Cargo, CityLine and Eurowings. Chief executive Carsten Spohr indicated the deal removes the threat of further walkouts this summer, according to Reuters.
The breakthrough arrives as the group counts the cost of industrial action that has already taken its toll on the bottom line. Second-quarter revenue climbed 8 percent to €11.1 billion, yet adjusted EBIT tumbled from €870 million a year earlier to just €383 million. Management attributed the shortfall to roughly €750 million in higher fuel expenses and at least €150 million in strike-related costs.
Geopolitical tensions stemming from the Iran conflict have pushed kerosene prices higher, a headwind that forced the group to trim its full-year outlook. Lufthansa now guides for adjusted EBIT between €1.7 billion and €2.2 billion in 2026, while liquidity remains steady at €10.7 billion.
Divergent Fortunes Across the Divisions
The quarterly numbers reveal a group pulling in different directions. Lufthansa Cargo lifted adjusted EBIT by €42 million to €116 million, while Lufthansa Technik contributed €157 million and the network airlines added €137 million. Eurowings, by contrast, slipped to a €37 million loss, underscoring how unevenly cost pressures have spread across the business.
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A separate labour dispute is complicating operations at a key southern European hub. Ground handler Groundforce in Barcelona has been on indefinite strike since 4 August, with around 1,200 workers involved. Spanish minimum-service rules are keeping operations running at between 35 and 80 percent, according to media reports, potentially slowing ground operations even though Lufthansa's own staff are not directly involved.
Expansion Continues Despite Headwinds
The group is pressing ahead with strategic moves even as it navigates the turbulence. Lufthansa confirmed in May it would exercise its option to acquire a 90 percent stake in ITA Airways for €325 million, and the deal has now been notified to Brazil's competition authority. The carrier also holds an option to later increase its holding to a majority.
On the customer-facing side, Lufthansa begins rolling out complimentary Starlink WiFi on select A320neo aircraft from 19 August, available to Miles & More members and Travel ID users. The move responds to growing passenger demand for in-flight connectivity as the airline seeks to stabilise its cost base against volatile energy prices.
Board member Dieter Vranckx has also been buying shares, according to a regulatory filing under Germany's securities trading act — a signal of internal confidence in the company's direction.
Market Sentiment Stays Cautious
Investors remain unimpressed despite the labour breakthrough. The stock closed Friday at €8.18, roughly 20 percent below its 52-week high of €10.27 reached in July. Over the past 30 days, the shares have shed 9.2 percent, reflecting the combination of weak quarterly results and lingering strike concerns.
Technical indicators point to a market in a holding pattern. The relative strength index sits at 36.5, approaching oversold territory — a sign of subdued sentiment rather than a clear reversal signal. The shares trade 9.0 percent below their 50-day moving average and 3.2 percent under the 200-day average, suggesting the market is waiting for evidence that the operational and financial pressures are truly easing before rewarding the stock.
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Lufthansa Stock: New Analysis - 17 August
Fresh Lufthansa information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
