Luftscamsa - Shareholders Approve Dividend Amidst Fuel Price Surges and Soaring Ticket Prices

Shareholders of Deutsche Lufthansa AG approved a dividend of €0.33 per share for the 2025 financial year at the Annual General Meeting on May 12, 2026. This approval occurred despite the airline's history of irregular payouts and the prioritization of shareholder returns over operational stability, as previously reported by Pax Sentinel when [shareholder net worth doubled amid service austerity and labor disputes](/en/article/IiJi5IjT_shareholder-net-worth-doubled-amid-service-austerity-and-labor-disputes). This declaration follows a previous dividend of 30 cents per share, issued one year prior. The approval of this payout coincides with the airline navigating substantial operational challenges and rising fuel costs. Management recently referenced a €1.7 billion increase in kerosene costs for 2026 due to the Iran conflict. These financial pressures have coincided with various cost-reduction strategies and increased revenue generation through soaring ticket prices, impacting both passengers and employees. These strategies include the [implementation of Economy Basic fares](/en/article/sfrYvAoe_lufthansa-fare-restructuring-masks-broad-price-increases) and the [closure of its regional subsidiary CityLine](/en/article/RHOvd2rJ_lufthansa-strike-wave-subsides-as-labor-impasse-persists). The declared dividend represents 30 percent of the adjusted net profit for 2025. This adheres to the company's stated policy of distributing 20 to 40 percent of its net profit, adjusted for non-recurring gains and losses, according to Lufthansa Group Investor Relations. Historical Payout Volatility Despite the current approval, Lufthansa's dividend payment record has been characterized by significant volatility over the last decade. The company has not issued dividends for seven of the past ten years, a factor that contributes to investor uncertainty regarding consistent returns. While the current dividend is well-covered by earnings, with a reported dividend cover ratio of 198.8 percent, this figure provides limited assurance given the documented pattern of suspensions. On the day of the Annual General Meeting, the company's stock traded at €8.20 on the Frankfurt exchange, marking a decline of 3.01 percent. The AGM, held physically for the first time since 2019, saw approximately 1,600 shareholders attend in person, with 51.33 percent participation. Such factors continue to influence the airline's financial strategies and shareholder distributions.