The beginning of 2023 has been turbulent for Germany's Lufthansa Group. In February, it was hit by a catastrophic IT failure that caused widespread flight cancellations across the six airlines it owns. Construction work damaged telecoms cables in Frankfurt which led to the collapse of the company's network.

As of 2026, Lufthansa is navigating a complex recovery period defined by high operational costs and structural inefficiencies. While the broader aviation industry has rebounded, Lufthansa has faced a sharp decline in operating margins, which narrowed to approximately 4.4% recently due to persistent labor disputes and rising staff expenses. The airline is also grappling with significant supply chain disruptions; specifically, delays in Boeing aircraft deliveries have stalled its fleet modernization plans, forcing it to keep older, less fuel-efficient planes in service. Additionally, "softness" in the competitive transatlantic market—traditionally a major profit center—and the massive capital expenditure required for its "Allegris" cabin retrofits have pressured its bottom line. To counter this, the group is currently undergoing a massive structural overhaul to streamline its nine passenger brands and reduce its workforce by several thousand positions.