Good morning, ladies and gentlemen. Welcome to the annual press conference 2026 review Till Streichert. Well, this is the first time that we're coming together in our new building, the conference and visitors building Hangar 1. It's not completed just yet. There's still a lot to do before the official opening can take place. I think everyone present here today feel tangible here and represents what Lufthansa stands for. I would also like to welcome those who cannot be here today, but who are joining us virtually. You all are aware or know the process. First of all, we're going to hear the speech given by Mr. Spohr. You can the electronic system to ask your questions. Interpreters here today.
Thank you very much indeed, Mr. Bartels. Ladies and gentlemen, I would also like to welcome you to our annual press event we are organizing here. A cordial welcome to you. This alone illustrates the special character of this year in which Lufthansa. We will do this because on the 6 January 1926 in Berlin, the first Lufthansa was of Deutscher Aero Lloyd and Junkers Luftverkehr AG air cargo business. On the other hand, an aircraft manufacturer with many years experience and a high level of technical expertise. Thus, even 100 years ago, a business model was created, is, and was to safely, comfortably, and on time translated by MRO and air cargo. Also the expansion into international markets was part of our DNA. Engineering spirit. The crane flew in intense stages is still of the flight network.
The first Lufthansa Russian got a share in Iberia is really an integral part of our DNA. This has now made us the largest airline group outside the U.S. and the fourth largest airline group in the world. Our anniversary, however, is not because and the first Lufthansa in 1933 was part of a rogue regime, and it supported that. We are also owning up to this part of our history. For this reason, with scientific support, we have documented the dark chapters in the Nazi era will be published in a few days time. Our second we then quickly with by now 6 group. What is even more important, we are connecting Europe to the world and the strength of our group are being integrated more and more with Lufthansa Group, which you can see here today.
This year, of course, we are acknowledging the past. What is at least as present and also creating again being faced with special challenges. First, the most important thing, our crisis staffs are active day and night aligned to us still in the crisis region and to provide support to them. Agreed such flights makes sense. They even live in the utmost to support them. This Iran conflict or war illustrates the exposure of the aviation industry to just being political and industry has become conflicts all over the world. Many when there was a conflict somewhere in the world, the aviation industry first collapsed. This is now the opposite. We are still active in the current escalation in the Middle East, however, the Gulf hubs has become a geopolitical Achilles heel.
I will come back to this point a bit later. Impact of the crisis on our business, I can tell you are having a position. We are actually hedged against higher fuel prices. Now, as you have been expecting as to the financial year 2025. We intentionally are calling it a year of transformation because we have launched numerous changes within the group. As such, it has been a very successful year indeed. The turnaround program of our core airline, the Lufthansa, is by far the most important element of our transformation. In the year 2025, we could make very significant progress. Above all, with respect to the operative performance in 2025, the crane could again flee on time and reliably as our customers are rightly expecting of us with values which go.
At the same time, this is the precondition. Lufthansa Airlines could achieve an adjusted EBIT of EUR 148 million, which is an improvement in comparison to the prior year. This amount corresponds the regular price of seven new ones for our core brand. This illustrates on the one hand how comprehensively we are investing in the future our core brand to again make it the figurehead of our group. On the other hand, it also shows that the result be sufficient to buy a single such long without any doubt. Lufthansa step towards this is the regained operative stability for the entire group of the passenger airlines. The costs in connection with flight irregularities in the year 2025 went down by 43%, which correspond cautiously revenue by 5%, thus we have now almost achieved over of EUR 39.6 billion.
All of us in Lufthansa for 2025, we had promised a significant increase in our operative result, we are delivering we are here by EUR 315 million, which is a market increase by 19%. The consolidated result with EUR 1.3 billion was at the level of the prior year, but it would actually have been markedly effect because of the reevaluation of loss in MRO and better operative performance, but also because of the positive effect of fleet modernization and the resulting product received by our airlines in the prior year. From October to December alone, a Dreamliner cabin. This connection is the progress in the approval process for the Allegris business class, and now, the fact that these 2 million passengers could be booked. This also applies to the premium product of our SWISS subsidiary.
Second A350 with SWISS Senses could be introduced into scheduled services. Use could be increased by 15%. Holders will also profit by this. That is, on the 12 May at the annual general meeting, we will be proposing a dividend of EUR 0.33 per share. This corresponds to an increase by 10% in comparison to the prior year, with a distribution ratio of 30%. Our employees are also profiting from the improvement because of the. Brings me to the traffic regions. The North Atlantic is still working smoothly because of the introduction. Covering this key market by more than 5%, and we could sell all this, and in particular, in the premium still increasing, that is, from the United States in the direction of Europe.
Atlantic, but there are also in whole market and one of the fastest growing aviation markets of the world. We will cover this more intensively. To this end, with our many years Star Alliance partner in India, we entered into a partnership agreement some few weeks ago, just after India and the European Union had actually entered into a new trade agreement. We are continuing the expansion in this region of the world and in other import. Specifically expanding our offering. They're expanding, if we include the. More even doubled our capacity to Latin America in these years, only 0.6% in this year. In view of the closed hubs in the Gulf, we now have a much higher demand. Flights, thereby we want to improve our frequency.
This concerned, for instance, flights to Singapore, Bangkok, and India, but also the demand for destinations in China and South Africa has also grown significantly. We could cover this only with additional flights. Despite the global growth of the aviation industry, however, we are also more and more concerned about the situation. Eight to the reasons and in particular coming from Berlin and Brussels. The fact that despite this political headwind and the geopolitical challenges, we are still playing a globally leading business model. Our competitors in London or Paris have a geographical advantage because of the size of their catchment model and entrepreneurial. Integrating more and more. This structure will also be reflected more clearly in our financial statements by showing four strategic pillars.
First of all, the backbone is and will continue to be our five hub airlines, and this accounts for 70% of our sales. This underlines the great significance of our turnaround program of our largest hub airline, Lufthansa. Secondly, outside our hubs in Frankfurt, Munich, Zurich, Vienna, Brussels. For successful point-to-point connections, we are offering that in the whole of Europe. Thirdly, It was also a very reliable brand with a margin of 9.5%, and it is actually the most profitable pillar in our portfolio, and it is now profiting from the volatility of the market. Will again be triggering short-term booking for urgent transports, all the more so since the Gulf carriers, which are hardly operating, account for only 18% of this business globally.
The fourth pillar is Lufthansa Technik, as the globally largest independent supplier and provider of maintenance, repair, and overhaul services. By now, 20% of all commercial aircraft globally is actually being supported by. Canada and Portugal. Additional revenue streams are also coming from the growing defense sector, and here the current developments are also playing an important role. The current developments which are occurring in the world. With this positive overview, Till will explain some more details of our business profits and results.
Thank you very much, Carsten, and a warm welcome from me as well. Let me start by walking you through the details of our financial performance over the past year. As Carsten already mentioned, our EUR 40 billion euros. This was driven. Capacity growth at our past. Third-party business. Same time. Industry-wide cost increases, largely driven by external factors, continued to weigh on our results, such as the 10% increase in. Cost fell by more than half a bill. This led to the effort. Billion euro with our adjusted EBIT margin improved. Was outpaced with the pre net investments. Our passenger airlines exceeded the previous year's results, partly due to favorable fuel prices. The positive contribution to earnings from ITA Airways, particularly. EUR 250 million at our core brand, Lufthansa Airlines. Clear evidence for the progress made by our turnaround program.
We expanded our capacity primarily on North Atlantic and continental. Ticket. Especially, we recorded higher average yields on the important North Atlantic of robust demand in this market as well. On the cost side, we were able to make continuous improvements over the course of the year. In the first half of the year, our unit costs rose by 3.6%. In the third quarter, this figure fell to just 0.5%, and in the fourth quarter, unit costs were virtually stable compared with the previous year. The bottom line, the effects of our turnaround measures are noticeable despite cost inflation and fees, charges, and personnel. Let me say a few words about Lufthansa Airlines, the largest airline in the group. As planned, the gross was over EUR 500 million, program EUR 0.5 billion medium-term.
We are a main Lufthansa Airlines based on the services and the implementation of our lead by the end of the year. This will increase our revenue quality, as can already be seen in the to improve products, Discover Airlines and Lufthansa City Airlines, 18 aircraft by the end of the year with a rising additional revenue increase efficiency. Overall, at Lufthansa Airlines to a maximum. Even this modest cost increase in a shareholder to flight operations at a transformation. There were OneIT program, more efficient procurement, and a streamlining of our IT landscape. From 2026 onwards, the focus will be on establishing a stable group-wide uniform IT platform, accompanied by the further digitalization of centralized procedures and is expected to save around and unlock additional potential. In addition, OneIT will enable the generation of additional business.
Let us now turn to our logistics segment. Lufthansa Cargo once again achieves trend driven by an ambition with strong, particularly actors and pharmaceuticals. Adjusted EBIT was thus almost 30% higher than in the previous year at EUR 324 million, due on the one hand to higher volumes and improved capacity utilization and on the other hand, to lower unit costs. Technique exceeded the by 12%, mainly due to strong third-party business growth of plus 20 level at EUR 303 million. The result includes earning to around EUR 30 million. The effect is limited only because we quickly took effective measures to Lufthansa focus on expansion 2026. 2026, which is challenging given the current situation in the Middle East. It's become more challenging indeed.
In 2026, we also plan to expand our capacity by around 4% in total with a clear again, but we will be lead modernization here and expect a significantly improved result for 2026 compared with the previous year. Of course, the current crisis in the Middle East is having a noticeable. Affected region are seeing an enormous increase in demand on our Asian Africa routes due to the situation in the Persian Gulf. In addition to this significant shift, we have also seen a very positive development at which is reflected. Mention it already, awfully high hedge rate gives us an important competitive advantage in an environment of rising oil prices. Despite the ongoing uncertainties, we are therefore confident about the planned earnings growth in 2026.
We therefore see 2026 as another year of progress towards our medium-term financial targets. With these words, I hand back to Carsten for further strategic commentary.
Thank you very much indeed, Till, ladies and gentlemen, some additional comments at the mass. Till mentioned the Capital Markets Day, where last year we presented our medium-term financial targets, and we want to and will increase our margin to a level of 8%-10%. 20%. At the same EUR 1 billion of refunds on four growth driver lines. In future, we will be growing business. The long-haul fleet is to grow to more than 200 aircraft in the group. The short term, we despite the stable short-haul fleet, we will manage more efficiently. The fleet has reduced the changeover rates. We are seeing bigger growth opportunities for we assume that the global trend towards high value, high quality private travel will go on.
We are well prepared for both with our southernmost hub, Rome Fiumicino, it's actually predestined for the expansion of routes into the globe. The ongoing private travel trend will also be supporting the success of our holiday airlines, both Discover and now with the Airbus A350 state-of-the-art aircraft. At the same time, in the next few years, we will be modernizing all the long-haul cabins with new seats in all classes. The second driver targets is the related more quickly growing availability of our new premium cabins. On the one hand, we have cost advantages because of the use of more fuel efficient and low maintenance aircraft, whereas we are also expecting higher are substantiating that we can increase fleet and product renewal airlines.
For the necessary stabilization of our flight operation, we made many investments in 2020, as you will remember. Additional reserves, generous buffers in the flight schedules, longer flight and changeover times. This cannot go on. In this aircraft, but also the productivity of our crews, we are still doing our utmost to reduce the cost per available seat kilometer or keeping it stable despite the cost inflation, and we succeeded in this in the fourth quarter of the last year in our core brand. This also includes that we are shifting capacities to flight op, for instance, Lufthansa City and Discover Airlines. The fourth driver is the ongoing scaling of our very profitable division alone that is Lufthansa Technik. We want to achieve a revenue of EUR 10 billion and an EBIT margin of 10%.
Currently, we are implementing the most comprehensive fleet renewal in our history. In this year, you will be able to see the full dynamic of 45 new aircraft this year, a new aircraft almost every year, and with even 20. This will Lufthansa Group, we will be achieving or will be receiving 1/3 of state-of-the-art aircraft, and this will lead to cost advantages. In next two years at Lufthansa Classic, that is in the Lufthansa Airlines, we will be phasing out five types of aircraft, the A340-600, 300, the Boeing 747-400, Airbus A320 fleet and the canopy 51,000. This will be added to the three A320 fleet. We are modernizing our fleet very swiftly and with respect to the engine problems, there are on the Airbus A320 be grounded permanently.
Politics is still being government in November 25 are profit, Germany, sorry, is profiting less and as a result of the high location costs, every second hub aircraft of our Group is stationed outside Germany. The high regulatory costs of the European Union are affecting us at all our European sites as the lab and these constitute unilateral disadvantages in the global competition. We want to make our contribution towards reducing CO2 emissions or emission aircraft, but the precondition for this a fair course in order to reform climate protection level independent air traffic agreements could create the war has again shown how indispensable a strong European airline industry is. If we cannot defend ourselves in Europe and not cover our fuel demand ourselves, then we should at least be able to connect ourselves with the world and our markets.
Thus the regulatory discrimination of European carriers in comparison to other route license agreements, which would actually shift the advantage more towards the Gulf region are problematic or the more so if, as now everybody knows, these have come about under obviously criminal circumstances. Ladies and gentlemen, the brand Lufthansa has had many in Europe. For 100 years, the brand Lufthansa has stood for excellence, internationalization, and strong partnerships. Future, as a matter of course, even in this anniversary year for the benefit of our passengers, but also our shareholders, we will add value, tap new markets, establish new partnerships. In addition to this, our passengers will also be profiting from many product improvements immediately. Within the framework of the future onboarding experience in the Lufthansa corporate alone, we are investing EUR 70 million for the benefit of our guests.
With Starlink, we are already providing the fastest internet link on board all our aircraft, but even on the ground, we will be better. We are modernizing all the Zurich, Vienna, and Rome, and we are doing our utmost lounge of ITA. In this month, we will celebrate the access to Star Alliance and the frequent flyer more or less in treatment together with more than 107,000 highly committed employees from 160 nations, we will for 100 years that is connecting people, cultures, and economies in a sustainable manner. With back to this, we have a unique unparalleled capital, our culture, our employees, and together the Lufthansa spirit.
When here in this building, we are looking back at the establishment of the first Lufthansa, we have every reason to be proud, but also full of optimism for the future yet to come. Now I'm looking forward to your questions. Thank you very much indeed.
Thank you very much, Carsten Spohr. Thank you very much, Till Streichert, for your remarks. Now we're moving on to your questions. Please, you also have the opportunity right here for the colleague to come with a microphone. Miss Wind, please.
Good morning, sir. Where will you focus? That is, which set go up now? You said that you have better development in this respect and also the longer flight times because you will have to avoid the crisis regions.
I'm going to start with the aircraft, with the capacities. Where do they come from? First of all, we've got 10- and- odd freighters , we've got sufficient capacities. Our flights to Bangkok have already been published, and high and daily also situation allows for it, which alarm is available. This will can increase in travel possibilities for people who are stuck in those. The fleet of the Gulf carriers which has been decommissioned, this has quite an impact. Of course, it'll go on. In three days we will be able to publish these flights on top of the 1st flights into Bangkok we've already published. Concerning fuel we've got four to take part of that, also this has been solid. Our hedging will also go into 2020.
At the end of the day is how we compare to our competitors or a higher fuel bill main the way they are at the moment. I believe this is the case given the announcement made by President Trump yesterday in the event. Longer this goes a few are more exposed to it because they're less hedged, so we have to expect prices to increase. This is level e stimate of this. My second increase and be the impact of this on the perception of investors.
We're going on with Lisa Schmelzer. Thank you.
What is the difference for an TecDAX or DAX company? How difficult that they talked about emission cost? Expecting the next five-10 years change to all the European regulations. The defense activities of Lufthansa Technik, what is the current situation?
Active in study questions. Concerning the emissions costs and the certificates, well, for the coming year, we have an impact of EUR 200 million roughly, which results from the reduction gone away completely. This is, you know, given the measures from the turnaround program, this is what we have to offset. For DAX though, we were situation is as it is. Let me tell you very frankly, after the matches, before the match, cards are given out again and again after every match. It is still our plan to improve our results, and I think this will also be reflected in generating values for the shareholders. It will also be reflected in the share. Sufficient opportunities already alluded to it. The hedging strategy itself, conceptually, is rather solid. Some hedges were less and it's in. For the time being, it is too early.
A follow-up question for the benefit of those who are watching us remotely. There are new contacts for fuel hedging. Very short. Now business from the defense side or what is being planned?
Both. We are already actively working with the German Army with respect to the flight operations, first that is the reconnaissance plane for submarines. This is an ongoing project, there are other things which might be important for the Chinook the Army will be getting. We are also track Arab planes, and we need European partners, the German Army happening and because of the Europe, where we maintenance will have to be outsourced to private players, private companies. There will be opportunities for Lufthansa Technik, even more so than the last seven days.
I've got four further questions from Portugal, virtually from ECO. He is asking if Lufthansa is planning ending offer. The question is to look into the financials and the operating, the strengths and weaknesses of that airline. Carsten Spohr, please.
We want to keep this process addition for the known, that is how to main less exploiting synergies of the Lufthansa Group. Portugal as such could become a very good strategic aviation partner because even now we are building a site of Lufthansa Technik in Portugal. We are tracking whether the site of the air force might be in the Lufthansa Group. These are three exciting projects which demonstrate the strategic relevance of Portugal, and we will pursue it. Financial components are the left-hand side, go to our files by their media in the second row place. You have the floor, and you will get the microphone.
To know if the prices, because it's rather low compared to other DAX companies, if it's sufficient, and then the active latent. You are expecting to see less profit going forward and the external MRO but from external through the equity ratio. Last two or three years, actually, we've kept it quite stable. Action A is about the crisis resilience volatility. I would like to point out to you that we have at the end of the year, we were above the upper end of this corridor. As far as crisis resilience and actually relevant in the final end or hidden taxes exactly. Aggressive reduction of corporation taxes, which had been announced by the German government for the next few years. That is, if you have fate of the future, and thus they will be going down. This is the effect.
Indeed. Lufthansa Technik, who's the perfect partner, but some assignments where Lufthansa Technik can operate more profitably. Of course, as a group, 50% external and 50. We want to keep it that way. As I said, which our airlines wouldn't pay internally because it that way. It's not as if we want to breed an internal monopolist, and it wouldn't be as successful if they knew have to, they would Lufthansa Technik also handed over to Technik.
Ilona Wissenbach from Reuters, please. Next.
Concerning the North Atlantic, the ITB said that bookings made by travelers, there are hints that things are going down this year. Even though demand from Americans coming to Europe would I wanted to know concerning ITA Airways. For some time, it's been can we expect that this is going to happen? ITA has actually generated profits, this building block was achieved, perhaps you can tell us when this will happen.
Yeah. When you talk about the ITB and Lufthansa, we are indeed obvious, but this is being more than confident. The shift of the passengers to North Atlantic, that is to more travelers from the United States, might even go up by up to 60% in the to 40%. We must look at the current figures. The Americans, Sure. We sell each and every seat to the one with the highest offer. There this is a very dynamic situation, but I believe I can tell you that what we succeeded in 2025, that is growing in both direction from the US, we grew by 2025 also in the North Atlantic route. There might be more growth towards the US have record offerings and also for the North Atlantic.
It's March now, so we haven't made the decision yet. You heard not only from me that this is developing quite well. It may not yet made. Now I'm reading out Peter Kempel's question from FT. I'm reading it off my iPad, which chimes in well with now flying into the US given the events which we are observing in the Middle East. It's a bit too early to assess the shift of these trends. What we're now seeing, the record bookings, incoming bookings, there are 75% alone more sales for the month of April in our booking system towards Asia. There is a lot that there are many people who wanted to fly with other airlines, but there will be a shift of travel streams as far as the Gulf itself is concerned, where the attractiveness will suffer.
Also important and significant as in the last few years, I think brand. In the United States, we are even the market leader for these routes and the brands Lufthansa and SWISS actually stand as the profit from these so-called soft factors, but we will also profit from the hard factors mentioned by Till Streichert because of our better hedging, or we did more hedging than others. Because of the expected price increases, we can certainly actually attract more customers and generate more profits.
Thank you very much. Carl Schleker, the third row on the right-hand side. The microphone is coming, and then we can get started with your question. Just a brief moment. Mr. Schleker, please.
Good morning all together. Perhaps you could tell us concerning the fleet renewal. Yeah, a lot Mr. Spohr said. The second question, you've got collective bargaining issues on the table at the moment, ground at the moment. Industrial actions are put on hold, but this is not going to be this way in the long run. What's the current situation and your plans for Frankfurt Airport? There are airport, are there also use Terminal 3 after rebuilding works have been completed?
CapEx. See you a bit better. Yeah, yeah. That's right. EUR two and a half billion includes approximately Technik and our cargo segment. Capital expenditure and also in craft sales and lease back. The figure you should remember for the aircraft, which we got in 2025, is, of course, higher. You touch upon collective bargaining contracts. We always have open collective bargaining contracts in aviation. This is the structure of the thing, even if you own something 100% to will be so great of classics. All employees to whom I talk, especially pilots, they want prospects. They do not want to shrink. They want to grow. Strikes always lead to higher costs. Even if we say there is no leeway for higher costs, the strike itself also reduces or leads to higher costs.
I don't think we're in for strike waves as was the case in 2013 or 2016. We're talking to UFO, we're also talking to ver.di. Meetings are being planned, we've also made offers to get together with other players as well. Concerning Fraport, yes, these talks have been ongoing for months or years. Imagine that these talks haven't really shown any results. Very soon, we will have to decide if we want to make a big investment decision in Munich, the satellite terminal, or if we want joint infrastructure, make a joint effort. Need for both, within the next.
Thank you. Christian Ebner will ask the next question, third row, but on the opposite side. Please wait for the microphone. Mr. Ebner, good morning.
Good morning. I've got two questions. On the one hand, today Eurowings is flying an aircraft to Riyadh. Could you tell us for the group how many customers or passengers of tourism subsidiaries are still in this crisis region, and how do you want to get them back? My first question. You have explained that you are not as a hub. What will be the long-term changes resulting from this?
The experience of prior crises have shown that people easily forget such negative situations. Already been planned or have already been carried out. The first hop. If there should be more need, we've five home governments, and if they need more, we will carry out more flights. Exact number of to help guests from other tour operators or other airlines. I don't think they will do that again as quickly, and we will try to get them home. The situation allows for it. Concerning your second question, the pilot of the Riyadh aircraft has. Because, given the security situation, we believe and the pilot believes that too that this was the right decision. This goes to show how difficult the predictability of such flights is, and this is true for the Eurowings flight as well.
There are this fly. This is no reason for us to fly. Third question. I wish I could give you an answer. There will be both. There will be people who've large scale. we are in for both, and if you send a lot of long-haul flights into the world, you will have to adapt to both developments. Bangkok, Singapore, Delhi, Shanghai, and others are destinations. also people who have, are now being booked on additional flights, which we are going to offer in the coming days. In the long term, what this means for the world as a whole not only for aviation.
Please wait for the microphone.
Question. Yeah, exactly. What Group, that is Eurowings Holidays, I mean, these are included. How many people are still in the region? That is people you are responsible for. You are flying on behalf of the government. That's great. There may also be other people you are responsible for yourself. How many are there?
There's not the These regions either be to go there even if they open up for an hour or so, or because they can't go there at all, or because the capacities on the ground are craft. Of course, we don't have the to come home, plus the passengers from the other airlines. If so, security comes first also in such reduces.
The other side, Timo Montkowski, followed by Timo Nowack. First you, please, Mr. Timo Montkowski. Thank you.
Thank you. I would also like to ask a question about the evacuation flights. I just want to understand this better. The Riyadh flight was deviated to Cairo. Is that one of Lufthansa Classic, or was that the Eurowings? No, it was a Lufthansa Classic flight. Let us stay with Riyadh fly back from Cairo. It's very dynamic indeed. While we are sitting here, passengers are being driven there from Dubai. It's more than 1,000 kilometers. They say on the Internet site that everybody should weigh off whether they want to use a land route, a ground route, because they are not aware of the risks, of the dangers. Is that the ideal solution? At the very beginning, you talked about the trade agreement between the European Union and India.
Please tell me what this will mean for the development of your traffic. What are the current options for you, and what are you hoping for? There is not yet a new aviation agreement. It's not part of this trade agreement. At the very end, could you perhaps expand on the air politics? They're trying to find an investor. Would this be an option to include a smaller company?
Which the federal government follows when they say you have to decide for yourselves if you want to travel or not. I can only say the same thing. Lufthansa can't decide if someone wants to take the bus to go to Riyadh or if you prefer waiting in Dubai for the airport to open. Given the security-related closure of airspaces, we are bound to what is possible. Sometimes the Iranians send out a coincidence. They want to spread uncertainty, but you've known me for a while. Security comes first. This is not about making money. People can help people with safety. One world visa and potent airports, their rights. Of course, I don't envy the people who are on the ground whom we are in touch with, the situation.
You have to try and strike a balance in order to generate growth rather than if you do things single-handedly. This includes our partnership with India, and we've got more connections to Europe. As you've said rightly, the negotiations haven't come to an end yet. airBaltic, we don't have any plans to increase our 10% share just yet.
Question. Thank you. You've rightly said that nobody can tell whether Doha would be at. What is happening there is really an opening in the Gulf carrier hand, your India, Japan, and long-haul business. Would you fly over Russia? Because there is. If the situation there escalates, would the destinations you cannot fly to at all be?
We hear a lot about that, which, I think it's too early to tell. I do believe that geopolitically speaking, to bundle journalistic streams on the ground. This would lead to a discussion on the sovereignty of Europe. Of course, these states need their carriers in order to assert themselves on the world map. We all believe this will come back. The discussion has to be about Europe in order to be independent, and this will see a new dynamism. We see the same thing if it's profitable. I've mentioned Asia, I've mentioned Korea. Southeast Asia, Kuala Lumpur is the first. There's things that in South happen if you are profitable. There are two open corridors to Asia, as you said, either via Afghanistan and Pakistan or via Saudi Arabia.
There are not more opportunities or possibilities to come to Southeast Asia. Just as our partners in France, we also use these two corridors. If they too were closed, then of course you could wonder if Asia is still reachable at all, but they're still open, and we don't believe that something will change concerning that.
Thank you for the question, Mr. Nowack. The next request for the floor is from Mr. Tom Boon from Simple Flying. Please.
Hello. A question in English, if I may. Regarding the fleet renewal, firstly, how confident are you that you will finally get the first 777-9s next year? If they're further delayed, are they gonna delay your retirements for the A340s, the 747-400s, et cetera? Also, what do you see as the long-term future in the Lufthansa Group for the 747-8s and the A380s?
Both questions are closely connected. The 777X, we don't expect it only in 2027, but in the first quarter of 27. After our talks with Boeing, we also expect that the aircraft will come in the first quarter, so we can use it in summer. I will also be going to Seattle to check if they are still around after so many years, I'm still confident that they will come in 2027. How long the others two will still be flying? That very much depends on how the delivery of the big aircraft manufacturers, how this will go on in the coming years, we're talking about the 30s, how stable that will be. Of course, you also fly an older aircraft if you have to. The Airbus A340-300, for example, we're still flying it this year before it's decommissioned.
A prognosis into the 2030s, this is rather difficult, could be that some aircraft fly longer for some years. The next Airbus A380 will come back from Dresden, and this will have the Allegris business class cabin. We're even investing in old aircraft. They're refurbished because we believe in these aircraft. You also have to see that Lufthansa is one of the few aircraft which has a strong premium and a strong cargo share, which makes the aircraft a good aircraft. We have a lot of premium, we have a lot of cargo, and therefore it's an ideal aircraft and will be flying well into the next decade as well. There's a similar question being asked remotely by Mr. Spaeth. Greetings to Hamburg.
The question is how in the fleets of the All and Axis business class, how this can be divided into Allegris as a line fit and how much there would be added as a retrofit in the aircraft, eight and 747. Well, before the end of the year 2026, we will have 40 Allegris aircraft. Before the first quarter 2027, so for a few weeks more, all of them will be refurbished.
There is a question by Mr. Krüger from WirtschaftsWoche in the last row on my right-hand side. Please, go ahead.
I've got two questions, please. What about the financial impact of the delayed delivery of the aircraft? I mean, you mentioned only the 10 Neos. My second question is the location related cost. Costs are supposed to be reduced in the summer in Germany. Is this perhaps only a drop in the bucket? When you talk about fees, you're talking about a takeoff, but not the airports. Are the airports also important factor in Germany?
Well, the question concerning the cost of aircraft delays can't really be answered because it's still part of negotiations with Boeing and whoever is responsible for the delays. We're talking about compensation payments which will then include discounts for the next delivery. This is a dynamic process where we try to offset as much of the damage created as possible. Concerning Germany as a location, well, we're taking back an increase. This is the first step. We're taking back the increase of the aviation and tax. This can only be the first step, so you're not seeing a great deal of growth in domestic German routes, which are still 20% beyond the hubs of what they used to be before COVID. These increases are not enough to stimulate that.
This brings me to the second part of my answer. I'm very happy about the fact that for the first time in decades, Berlin and the federal states have recognized that aviation has a problem. We've said so for many years. No one believed us. When the decrease in Germany was so strong compared to other European countries, you couldn't negate that anymore. You could see that things changed. I'm happy that Berlin is listening to us, and we're starting a dialogue with them and the country. Responsible for the airports, we have the most expensive airports in Europe, and you don't always have the possibilities, you know, that you can redirect traffic to Rome or Munich. You can do that less when it comes to Düsseldorf or Hamburg, because this is about local traffic.
If you look at Berlin, for example, costs are too high, but the airports know that, and this is why I think the dead point of the discussion lays behind us.
The next question by Mr. Xiang, followed by Mrs. Haxel and Mr. Weyer. Mr. Xiang first, please, and you will get the microphone.
Mr. Spohr. You said that North America is the most important global market for Lufthansa. My question is that with respect to Asian routes, that is routes towards China. How about the flights to Beijing, Shanghai, what is the role of the Asian market in the strategy of Lufthansa?
Well, thank you. It's quite an interesting question because for many years the order has been North America first, second most important market, China. Now India has overtaken China and has become our second most important market. The reduced flights to China have been successful, but the route offer is not as great as it used to be because the closure of the Russian airspace means that we have to take other routes and the Chinese aircraft can just fly through the Russian airspace. It's been profitable, but we will only be able to expand that if we are also possible to fly through the Russian airspace once it's open again, or if everyone has to fly around it, and then we could grow as well.
Now things are asymmetric and therefore I don't see a lot of growth potential, with the exception of some flights, for example, Shanghai, because there are so many Europeans who want to go back and also so many Europeans want to go to Shanghai. That additional flights, are justified, and they also have to fly around the Russian airspace.
Mrs. Haxel, please, on my left in the third row. You have the floor, please. Sorry. No, first Mr. Weyer and then you. Yeah. Sorry. It's difficult for me to see you because you're behind the camera.
Thank you. I've got a question about a completely different subject, that is tariffs. You said that Lufthansa Technik was impacted by tariffs, and you took some remedial action. What specifically did you do? What are the consequences of the Supreme Court ruling? That is, do you want to demand back paid tariffs?
Concerning measures, just as others, we've tried to optimize product streams, and if input cost increase, then you have to pass them down, partially at least. This is also what we did as a mitigating measure. Since the Supreme Court verdict, this is quite clear. We follow this very closely. Once the opportunity opens up to use this and to demand the tariffs back, we will do so.
Again, a question about the routes to Asia. Mr. Spohr, you said that there are two options with respect to airspaces where you may fly as a German operator. Is it getting a bit tight if you want to expand the capacities? We could see after or at the beginning of the war in Ukraine that actually, the capacity of the airspace was too low. What are the options? Prices are also going up. I want to ask a question about the new aircraft you're expecting. Airbus has a very disappointing delivery target for the current year, and they pointed fingers at Pratt & Whitney. To what extent does this affect the deliveries of the jets you are expecting?
Concerning Asia-Pacific, well, tight wouldn't be the right term because usually, aircraft don't come as close to you as these two we have here now. It also depends on weather, for example, when the corridor is smaller because due to weather conditions, you can't use the whole airspace, and this can give rise to delays or flight schedules being changed. You also asked about our competitors also. This can lead to delays, but that we've reached a point that it grows to the point that we don't have any space for each other anymore. This is not the case, because there are loads of aircraft from Abu Dhabi and Doha, which are not using the routes and those routes anymore. Yes, it is a bit of a hassle. Which is even more difficult is if Whitney doesn't deliver spare parts.
What they do is ride delivering spare parts to those who are using their gear, for example, Lufthansa. If you then have still parts, you know, which are still there, you can give them to Airbus, for example.
Thank you, Mr. Weyer, for your question. I've got another question from Portugal, and this is being asked by several colleagues in Lisbon, Ana Suspiro, André Cabrita-Mendes, José Mão , and José Nicolau de Melo. All of them want to know, please, what the future of TAP might be like as part of the Lufthansa Group, whether Lisbon would remain a hub, or whether they would have to go back into the second row of the hubs of Lufthansa, and whether the TAP as a group airline might maintain its independence.
Thank you very much. That's a good question. Just have a look at the European map. Have a look where Lufthansa has its hub, and then you can see what our, or what unique positions, Portugal would have. Our competitors are already big in the South Atlantic. Some have a hub in Madrid, some have a hub in Paris, which are much closer to Portugal, and this means the threat for a hub in Portugal and Lisbon would be much greater, which would be another argument for the Lufthansa Group. As I said, the process is just being started, but the European map is not going to be changed in the process.
From Anabela Campos, also from Lisbon, the question as to whether Lufthansa has already talked with the Portuguese government about this and whether they expect the European Commission to actually approve the takeover of shares. That is, would this be permitted?
I believe it's too early to say that, but the answer I just gave also applies to the question where competition is most difficult. We are the smallest compared to our two competitors, and Lisbon would have a bit of a unique selling point for us. Therefore, the antitrust question is not as important for us as for our competitors. Of course, we're talking to the government because we have to add one more thing. This transaction, even it might be strategically interesting, we will only be going to do it if we create a profit also for our stakeholders, and this depends on costs and prices, which have to be paid. This, what my competitor in London said, I can only repeat this as well, is also about the shareholders. It's too early to make a statement on that.
A question from the Netherlands for Mr. Streichert about the turnaround. The question is whether additional actions are required in the turnaround because of the geopolitical situation in the Middle East, there might be additional costs which would have to be compensated for.
Well, the answer is clearly no. I don't see any connection there. The turnaround program itself is going well. The cost increases on the fuel bill, which we might be in for, well, I rather think the increase in demand can offset that. The turnaround program itself is something which we work on with a great deal of discipline. Of course, if on short no notice there is the possibility to scale and adjust things in order to realize a profit short term, we would do that, of course.
Thank you. Mr. Kottermanos from Frankfurt, well, it's a pity you're not here. You're missing something. We are in a beautiful hangar. Your question is about Discover Airlines and Lufthansa Airline. That is the question as to whether the contribution to the profit of Discover Airline, or the other way around, whether Lufthansa Airline could also do without the profit generated by Discover. Would it have been positive?
Quite a clever question. It would be a lot smaller without Discover , and this goes to show how important Discover has become and how important competitive cost structures are. I can tell you that.
These are all the questions I've got on my iPad, but there is another request for the floor. Please go ahead.
Perhaps a question about different subsidiaries, because they have lower profits that is lower by 26%, lower turnover. Why is SWISS going down? They are saying competitive pressure, higher fees and charges and bottlenecks in the operation. Could expand on this? What will be the extent of cost reduction measures? As to the competitive pressure all in all for Lufthansa, in 2025, who did you feel most? Was it really the Gulf carriers or the no-frill airlines such as Ryanair? Could you please expand on this?
One thing is important. You have to take 2024 as a benchmark where we have a one of effect. That was a good year for SWISS. You can't really count that. But one thing is clear, and Switzerland knows that, we don't have the productivity levels with SWISS which we have seen over many years. The last collective bargaining agreement has taken a lot of productivity away. The new Swiss boss is trying to make sure that we are not losing the market because the market in Zurich is the strongest we have. This is only about the strongest markets which Lufthansa in Frankfurt doesn't do, but we try to cover a lot of space, so competition is strong here. Who's the competitor which hurts as much?
Well, it's Air France because Air France and Lufthansa have the most overlap, so to speak. Your question rather is, who's especially aggressive? Who grows a lot? This can change, but it's important to look ahead what's going to happen in the years to come, and are we going to see a seizure at the Gulf? If yes, to which extent? I think this is a quite dynamic topic which changes a lot.
I was going to say I can't see any other requests. Timo Nowack, who is again requesting the floor.
The final question for you. Mr. Spohr, could you tell us more about the two expected aircraft in the retro livery?
The A380, this is also about delivery delays. The aircraft is still in Toulouse and is going to be delivered in September. Not the anniversary delivery, there are also retro livery. One is already there. That's the Super Star delivery. What do they look like? What point in time are we looking at? I don't know if the rumors are right. You've heard we've also talked to our staff. What would you want an aircraft to look like? The talks are still ongoing. We wanted to listen to our employees, you are the first one to see a photograph. Yesterday, our jumbo landed in its anniversary livery, which is quite an eye-catcher.
Thank you very much for your attention. Thank you very much for being here. 90 minutes of press conference. Thank you also to all those joining us online. We all wish you a nice sunny day here in Frankfurt and a nice weekend. Thank you very much and see you next time.