Lufthansa Group Improves First Quarter Result Despite Fuel Shock

‍FRANKFURT — Lufthansa Group reported an improved first quarter of 2026, with revenue rising 8% to €8.7 billion and adjusted EBIT improving by €110 million to a loss of €612 million, versus a €722 million adjusted operating loss a year earlier. The company said the quarter marked a stronger start to the year, even as geopolitical tensions in the Middle East drove a steep increase in fuel costs.

Improved quarter, yet seasonal loss

This improvement is notable as Lufthansa (LH) typically reports a first-quarter loss due to seasonally weaker demand in Europe. Although the group remained in the red, the loss was narrower than anticipated.

Reuters reported the €612 million adjusted EBIT loss outperformed the company-compiled analyst consensus of approximately €659 million, resulting in a 6% increase in Lufthansa shares following the announcement.

Fuel costs remain a significant challenge

Fuel costs were the primary challenge. Reuters reported that Lufthansa faces a €1.7 billion increase in jet-fuel expenses in 2026 due to the Middle East crisis. The group expects to offset this pressure through higher ticket prices, improved network planning, cost reductions, and hedging that covers a significant portion of its kerosene requirements this year.

Rationale for maintaining guidance

Despite these challenges, Lufthansa maintained its outlook for a significantly higher adjusted EBIT in 2026 compared to the €1.96 billion achieved in 2025. The official release noted that while the Middle East crisis is increasing fuel prices, it is also supporting demand in both passenger and cargo segments. Reuters reported that continued strong travel demand through Lufthansa’s hubs has provided management with sufficient confidence to uphold the full-year target.

Ongoing risk factors

However, significant risks remain. Reuters reported that labor unrest continues to pose a threat, with April cabin-crew and pilot strikes costing the group approximately €150 million and resulting in the cancellation of 20,000 summer flights. Lufthansa also stated that its guidance is contingent on avoiding further major strikes and additional fuel supply disruptions.

Bottom line

Lufthansa’s first quarter was stronger than the headline loss indicates. The group improved its operating performance, exceeded expectations, and maintained full-year guidance despite significant fuel cost pressures. The key challenge ahead is whether robust summer demand and pricing can continue to offset fuel and labor risks.