Lufthansa Group improves first-quarter result despite rising fuel costs

Germany

The aviation group reported stronger revenues and improved earnings in the first quarter of 2026 while maintaining its positive full-year outlook

Lufthansa Group significantly improved its financial performance in the first quarter of 2026 despite ongoing geopolitical tensions and rising fuel prices. Group revenue increased by eight per cent year-on-year to 8.7 billion euros, marking a record first quarter for the company.

Adjusted EBIT improved by 110 million euros to minus 612 million euros, while net income also showed a clear improvement compared with the previous year. Adjusted free cash flow rose by 65 per cent to 1.4 billion euros.

The company said strong travel demand, particularly in March, helped offset operational challenges linked to the crisis in the Middle East and higher kerosene costs.

Passenger demand remains strong across network airlines

Lufthansa Group’s network airlines benefited from robust demand and flexible route adjustments. Seat load factor increased to 81.9 per cent, while unit revenues rose by 3.3 per cent compared with the first quarter of 2025.

Following reduced traffic through Middle Eastern hubs, the group added additional flights on routes to Asia and Africa. Demand was particularly strong in premium travel segments.

At the same time, Eurowings expanded capacity by five per cent and continued strengthening its European leisure business after temporarily suspending flights to parts of the Gulf region.

Overall, the network airlines improved their Adjusted EBIT by 135 million euros year-on-year.

Cargo and Technik continue strong performance

Lufthansa Cargo continued its positive development during the quarter, improving Adjusted EBIT to 83 million euros, up from 62 million euros a year earlier. The company benefited from stronger yields and sustained demand in the air cargo market.

Lufthansa Technik also delivered stable earnings despite global supply chain and labour shortages. Revenue increased by 12 per cent to 2.3 billion euros, while Adjusted EBIT remained largely stable at 158 million euros.

The group’s total workforce increased to around 110,000 employees, including 5,500 employees at Eurowings.

Higher fuel prices increase pressure on full-year performance

Despite the positive first-quarter development, Lufthansa Group warned that uncertainties for the remainder of the year have increased. The ongoing Middle East crisis and the closure of the Strait of Hormuz have driven kerosene prices sharply higher.

According to the company, higher fuel prices could create additional costs of around 1.7 billion euros in 2026, although approximately 80 per cent of this year’s fuel requirements are already hedged.

Lufthansa Group plans to offset part of the additional burden through higher ticket revenues, network optimisation and further cost discipline.

Nevertheless, the company maintained its outlook for the full year and continues to expect Adjusted EBIT to remain significantly above prior-year levels.