Lufthansa Q1 Loss Narrows as Strong Summer Travel Demand Boosts Outlook

Deutsche Lufthansa reported a smaller first-quarter loss and reaffirmed its full-year forecast, supported by expectations of a strong summer travel season despite rising fuel costs linked to the Iran conflict. The German airline group said growing passenger and cargo demand continues to strengthen its recovery momentum in 2026.

Lufthansa posted an adjusted loss before interest and taxes (EBIT) of 612 million euros ($715.7 million) for the first quarter, improving from a loss of 722 million euros recorded during the same period last year. The result also surpassed analyst expectations, which had projected a loss of around 659 million euros based on a company-compiled survey.

The airline group generated revenue of 8.7 billion euros during the quarter, marking an 8% increase year-over-year. However, the figure came in below market expectations of 9.335 billion euros, according to estimates from Visible Alpha.

Lufthansa stated that geopolitical tensions in the Middle East, particularly the ongoing Iran conflict, have increased demand for both passenger flights and air cargo services. Chief Executive Officer Carsten Spohr emphasized that the company remains financially resilient despite operational and economic challenges affecting the aviation sector.

At the same time, Lufthansa revealed that higher fuel prices caused by the conflict have added approximately 1.7 billion euros in extra fuel expenses so far this year. To manage the rising costs, the airline plans to increase ticket prices, optimize flight schedules, and implement additional cost-cutting measures in the coming months.

The company maintained its positive full-year guidance and expects adjusted EBIT in 2026 to rise significantly above the 1.96 billion euros reported in 2025. Lufthansa’s outlook reflects confidence in continued travel demand growth, improved airline operations, and steady recovery across the global aviation market.