Key Takeaways
- Lufthansa shares surged over 8% following first-quarter results that surpassed market predictions
- Q1 adjusted operating loss came to €612M, outperforming the anticipated €659M deficit
- Quarterly revenue increased 8% to €8.7B, though falling short of the €9.3B consensus estimate
- Middle East conflict has inflated fuel expenses by €1.7B through 2026 to date
- 2026 annual guidance unchanged, with profit expected to significantly exceed 2025’s €1.96B figure
German aviation giant Lufthansa delivered first-quarter results that topped market expectations on Wednesday, sending shares climbing more than 8% during early Frankfurt trading sessions.
The airline’s adjusted operating deficit for the first quarter totaled €612 million, comfortably surpassing analyst projections of a €659 million shortfall. This marks a notable improvement from the €722 million loss the company posted during the corresponding quarter of the previous year.
Quarterly revenue reached €8.7 billion, representing an 8% year-over-year increase. Nevertheless, this figure came in below the €9.3 billion that market analysts had anticipated.
The ongoing Middle East tensions are creating a dual impact on Lufthansa’s operations. While jet fuel prices have escalated significantly, the conflict has simultaneously redirected passenger traffic through the carrier’s European hubs, strengthening demand across both passenger services and freight divisions.
Since the beginning of 2026, the Iran conflict has imposed an additional €1.7 billion burden in fuel expenditures. This substantial cost increase has prompted Lufthansa to implement a multi-pronged response strategy, including fare adjustments, schedule reductions, and accelerated cost-cutting initiatives planned for upcoming quarters.
The airline has already eliminated 20,000 flights from its summer timetable to address capacity constraints stemming from fuel supply challenges.
Annual Guidance Reaffirmed With Caveats
Notwithstanding the fuel cost pressures, Lufthansa stood by its complete 2026 earnings projection. Management anticipates adjusted operating profit will substantially surpass the €1.96 billion achieved during 2025.
CFO Till Streichert emphasized an important qualifier, noting the forecast assumes “no fuel supply bottlenecks or further strikes” materialize.
This caveat carries significant weight. Industrial action by cabin crew and pilot unions throughout April resulted in €150 million in financial damage. The airline issued two profit warnings during 2024 specifically due to labour-related disruptions, highlighting the ongoing vulnerability to such events.
Streichert provided assurance that fuel availability at the company’s primary hubs remains stable through June. For extended intercontinental services to Asian and African destinations, contingency planning includes potential intermediate refueling stops.
Market Analyst Perspectives
Barclays analyst Andrew Lobbenberg observed that while Lufthansa’s quarterly outperformance was more modest compared to Air France-KLM’s results announced the previous week, sustaining guidance amid the €1.7 billion fuel cost escalation and April labour disruptions demonstrated “marked confidence in future unit revenues.”
CEO Carsten Spohr echoed this optimism, asserting the company remains “resilient in our ability to absorb these impacts.”
The carrier continues advancing its comprehensive restructuring initiative, which targets achieving profit margins between 8% and 10% during the 2028-2030 timeframe.
By mid-morning Wednesday, Lufthansa shares were trading 6% to 8% higher on the Frankfurt exchange.
