Published by Global Banking and Finance Review
Posted on December 18, 2025
LONDON, Dec 18 (Reuters) - German airline group Lufthansa has vowed to start making its ambitious turnaround plan a reality in 2026 as investors remain sceptical at the end of another mixed year under Chief Executive Carsten Spohr.
Since Spohr took the helm in 2014, the group's shares are down around a third. Although the stock spiked in 2017, it was hit by the Covid-19 pandemic and has struggled to recover since, making it something of a laggard among European airlines.
If you'd invested on the day 59-year-old Spohr, a former pilot, took over, you'd have lost 18% of your money, including dividends, or 1.7% on an annualised basis, according to LSEG data.
Although its shares have closed the gap with those of its rivals in recent months, they've still underperformed as Lufthansa lags its competitors' financial and operational performance.
Lufthansa shares are up 26% in the last six months, compared to 35% for British Airways owner IAG and 44.6% for Air France-KLM.
LUFTHANSA TRYING TO WIDEN ITS MARGINS
Investors have warned that Lufthansa's cost and labour struggles are weighing on their confidence - and on the company's margins.
Its group operating margin narrowed to 4.4% last year from 7.6% in 2023, with analysts forecasting 4.8% for 2025. That's narrower than IAG and Air France-KLM.
Spohr is making changes such as cutting 4,000 administrative jobs over five years and retiring old planes, in an effort to hit an operating margin of 8% to 10% between 2028 and 2030. That's won over some investors.
Lufthansa also wants to streamline its complex structure, which includes six hubs and nine passenger airline brands ranging from Italian flag carrier ITA Airways to budget offering Eurowings.
Global headwinds are increasing, however, with softness in transatlantic travel. Lufthansa's plans could also get sidetracked by supply chain snags on its long-awaited Boeing jets and tough union negotiations.
(Reporting by Joanna Plucinska; Editing by Kirsten Donovan)
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