Lufthansa's first quarter loss narrows despite $2 billion fuel hit

Lufthansa kept its 2026 profit outlook on Wednesday (May 6), saying hedging, higher fares and cost cuts would help offset a 1.7 billion euro ($2 billion) jet-fuel hit to costs, sending shares up 2% even as labour strikes cloud the year ahead.

The group would mitigate the impact of higher jet fuel in the next quarters "through increased revenue from ticket sales, optimised network planning, and further cost-saving measures," Lufthansa said in a statement.

The airline said the crisis in the Middle East, which had send jet-fuel prices surging due to a drop in supply, was boosting demand as travellers rerouted via its hubs.

European airlines are expected to be shielded from the initial fallout of the jet fuel shock in the first quarter, though some, such as Air France-KLM, have adjusted their outlooks for 2026 with jet fuel prices set to remain high.

Lufthansa reported an adjusted operating loss of 612 million euros ($717 million) in the January-March period compared with a loss of 659 million projected by a company-compiled analyst poll. That is an improvement from an adjusted operating loss of 722 million euros a year ago.

-Gabi Sajonz, Ulrike Heil/Reuters