Germany’s flag carrier Lufthansa is setting its sights on strong profitability for its core airline in 2026, according to remarks by CEO Jens Ritter, as reported by Reuters. Speaking to reporters on Thursday, Ritter said that after meeting its 2025 targets, Lufthansa is “back on track to return to profitability.” The push comes as part of a broader cost-cutting and service-improvement program that the group plans to run through 2028. The aim is to transform what has been considered the group’s weakest link into a financially sustainable mainline carrier.

This initiative marks a turning point for a carrier long pressured by high operating costs, stiff competition, and legacy labor agreements. Lufthansa’s ambition to boost profitability coincides with renewed operational stability — a crucial factor for an airline balancing aggressive recovery plans with rising demand for air travel across Europe and globally. With fresh fleet additions and reworked staffing rules, 2026 could be the year Lufthansa moves from recovery to sustainable growth.

Confident Outlook For The Coming Year

Lufthansa’s turnaround strategy is already yielding results. The airline is on track to hit all its 2025 cost-saving and service targets. These gains, Ritter explained, put the company in a strong position heading into next year. Critical to the 2026 plan is boosting productivity through renegotiated labor deals. The new agreements covering ground staff, cockpit crew, and cabin crew are designed to give Lufthansa greater staffing flexibility, which should translate into leaner operations and lower labor costs.

In addition, Lufthansa is examining whether to reduce its reserve aircraft fleet and instead deploy more aircraft actively — a move that could unlock further efficiencies. Lufthansa is also banking on fleet renewal as a revenue-boosting lever, as the company plans to use newer, more efficient wide-body jets, including the Boeing 787 and Airbus A350, more effectively. From 2026, these aircraft will offer upgraded seating comfort and enhanced catering across all long-haul classes — features that could make long-haul routes more attractive and profitable.

In addition, the airline plans to retire its older, less efficient aircraft, such as the Airbus A330ceo and A340, in the near future. Ritter said during the conference:

“Next year will focus on profitability and productivity.”

Structural Challenges Shape Lufthansa’s Long-Term Strategy

Lufthansa has long been viewed as problematic within the larger Lufthansa Group, mainly because the mainline carrier has struggled for years to reconcile high legacy costs with thin margins. The turnaround plan launched by Ritter’s management aims precisely to resolve those structural issues by simplifying operations, reducing overhead, and modernizing the fleet.

In the airline business, productivity gains and fleet renewal are often the most effective tools for long-term sustainability. Newer aircraft tend to consume less fuel, require lower maintenance, and offer passengers a better travel experience. All these factors can help improve load factors and yield. For Lufthansa, deploying 787s and A350s more intensively could deliver both cost savings and revenue upside.

Moreover, the renegotiated labor and deployment agreements reflect a broader industry trend: legacy carriers seeking to adapt to a post-pandemic, cost-conscious reality. The flexibility to staff more dynamically and keep fewer aircraft tied up as reserves could make Lufthansa leaner and more competitive in a crowded European market.

Long-Haul Expansion And Product Upgrades

Beyond the 2026 profitability push, Lufthansa has signaled broader ambitions for long-haul network expansion. The improved comfort and service on new jets may not only help the airline attract more passengers once the new cabin seats are certified and installed, but also support efforts to reclaim market share on premium routes. This comes at a time when demand for transcontinental travel is rebounding strongly.

Historically, Lufthansa has also invested in its hubs and network connectivity, adopting a strategy that includes using multiple European hubs to support its long-haul services. The 2026 plan could therefore enhance not only financial health but also network resilience — making Lufthansa better prepared to compete with rivals across Europe, the Middle East, and transatlantic markets.

Finally, the commitment to renew the fleet and improve service signals a broader transformation: Lufthansa is repositioning itself from a cost-heavy legacy carrier to a modern, flexible airline capable of competing on efficiency, service, and experience. If all goes according to plan, 2026 could mark the beginning of a new positive chapter for the airline.