An extract from the nearby discussion about "Did the LW achieve air superiority over the 8th AF after the Schweinfurt missions? ", comment #26 page 2 :
This explaines well what I put shortly in the Fana's (the magazine) quote up above. In BoB the LW may well have had, overall, a bloody strain on its effectives, but it was a RAF crushing machine nonetheless, as the FC had to keep on defending the vital South-East part of its country. At that stage, the middle of the battle, the LW was furthermore enjoying better pilots losses vs the RAf than the overall figure Juha (hello!) gives. But it is not really the point.
The Lufwaffe changed its strategy, its aim (to central London blitz), and eventually changed it again (night blitz.) And according to the statement above it is this and not the losses, that lead to the loosing of air superiority
The abandon of primary objective did it. Signed it.
This is what should be read in the (coarse) sentence : "the German lost because they failed to acknowledge they [were winning] it."
Even though the very losses were, psychologically more than effectively (LW had lengthy reserves at this pace), part of the decision to indeed abandon primary target before its fullfilment.
I reckon the above quote should be put back into context to become really convincing. A long discussion about what air superiority is, compared to air denial, local air superiority etc., and the military consequences of these.