Lufthansa Feedback from the J.P. Morgan European Industrials Conference

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Lufthansa Feedback from the J.P. Morgan European Industrials Conference

and so is benefitting from outsized moves down in jet; the Olivia Petronilho - Specialist Sales -

European Consumer

opposite of the start of the crisis). Jet fuel availability is now largely secured

(44-20) 3493-3709

until early-September due to lower industry capacity, refineries increasing jet olivia.b.petronilho@jpmorgan.com

production, and increased imports from the US.

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• (2) Pricing trends remain solid: 2026E EBIT guidance required +5-6%

Network RASK growth to offset the c€1.7bn additional fuel costs. March was

+12% and current trends remain supportive. April was impacted by strikes;

however, management are pleased with May-June pricing. APAC and Africa

RASK were up “teens” % versus prior year in May despite Middle Eastern

capacity returning. Lufthansa pivoted to a yield-led strategy at the start of the

year which is working now, but it remains to be seen if July-August late

bookings are realised at higher yields. Bookings curves are shorter, particularly

in the economy cabin (likely related to consumer sentiment and concerns on jet

fuel availability); however, premium demand remains strong. Lufthansa has

seen an acceleration in bookings week-on-week as the conflict has reached a

resolution and with improved messaging on jet fuel supplies.

• (3) Headroom to 2026E EBIT guidance: As stated at the Q1 results, earlier

“significant headroom” to the 2026E EBIT guidance had been eroded by

strikes (c€200m total impact in Q2) and the increase in fuel as of early May.

Current pricing trends remain solid whilst fuel costs have come down; in our

view this would suggest that headroom to the EBIT guidance has increased

again if marking to market now. However, management are currently choosing