Lufthansa Group narrows Q1 losses as revenue hits record, outlook holds despite fuel risks

Lufthansa Group reported a significantly improved first quarter in 2026, with revenue rising 8% to €8.7 billion—a record for a Q1—while its Adjusted EBIT loss narrowed by €110 million to -€612 million. Net income also improved markedly, and free cash flow surged, enabling a reduction in net debt.

Performance was supported by strong passenger demand, particularly in March, partly driven by traffic shifts away from Middle Eastern hubs. This boosted load factors, yields, and network airline performance. At the same time, Lufthansa Cargo continued its positive trajectory, increasing Adjusted EBIT to €83 million, while Lufthansa Technik delivered a stable €158 million despite supply-chain and staffing constraints.

However, the quarter was shaped by geopolitical disruption in the Middle East, which had a dual effect:

• Negative: a sharp rise in kerosene prices, increasing cost pressure
• Positive: stronger demand and yield environment in both passenger and cargo segments

The Group remains partially shielded, with around 80% of 2026 fuel needs hedged, but still expects an additional €1.7 billion fuel cost burden this year. Concerns also persist about potential kerosene supply constraints, although no immediate disruptions are expected.

Despite these uncertainties, Lufthansa maintains a positive full-year outlook, expecting Adjusted EBIT to remain significantly above 2025 levels. This confidence is underpinned by:

• Strong summer booking trends
• Network flexibility and capacity adjustments
• Ongoing cost discipline and efficiency measures

In summary, Lufthansa enters the peak travel season with strong demand and improved financial momentum, but faces a more risk-heavy environment dominated by fuel price volatility and geopolitical uncertainty.