The German airline held its full-year profit outlook even as the Middle East conflict drives up kerosene costs
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Lufthansa reported an adjusted operating loss of €612 million in the first quarter of 2026, an improvement from a loss of €722 million in the same period a year earlier. The company said revenue rose 8% to €8.7 billion ($10.2 billion), a record for a first quarter.
The result came in better than analyst expectations of a €659 million loss, according to Reuters. Net income improved to -€665 million from -€885 million a year earlier.
The airline maintained its full-year outlook for adjusted operating profit significantly above the €1.96 billion earned in 2025. CFO Till Streichert said that forecast holds "provided there are no fuel supply bottlenecks or further strikes," the company said.
The ongoing conflict in the Middle East — and the effective closure of the Strait of Hormuz — has constrained kerosene supply and pushed fuel prices higher. Lufthansa said those conditions are adding €1.7 billion in fuel costs in 2026. To manage the shortfall, Lufthansa said it had locked in prices for 80% of its annual jet fuel needs and would pursue a combination of higher fares, network optimization, and operational savings to cover what remains.
A total of 20,000 short-haul flights have been removed from the schedule, according to CNBC, as part of an effort to reduce fuel consumption and shed money-losing routes. Should supplies tighten beyond current projections, the group has drawn up contingency options that could involve intermediate refueling stops added to routes serving Asia and Africa, according to Reuters.
The crisis has also created some offsetting benefits. Demand has risen as travelers reroute away from Middle Eastern hubs, and Lufthansa's cargo business has seen accelerating momentum. Lufthansa Cargo posted an adjusted operating profit of €83 million, up from €62 million a year ago, while Lufthansa Technik held roughly steady at €158 million.
Streichert said that while annual profit will likely fall short of original expectations, strong booking trends — particularly in the second half of the year — and continued cargo performance support the group's ability to hit its target. "Our annual profit will likely be lower than originally anticipated," he said in a statement. "Nevertheless, based on current booking trends, we expect to be able to largely offset the high fuel costs successively — especially in the second half of the year."
Strikes are still a risk for Lufthansa. According to Reuters, pilot and cabin crew walkouts in April cost the airline about €150 million. Lufthansa also issued two profit warnings in 2024 because of labor disruptions.
The Middle East conflict has put the broader airline industry under pressure. As fuel costs across the industry have climbed, carriers including Delta, JetBlue, and United Airlines have raised checked baggage fees, and airlines in Asia and Australia have announced ticket price increases or higher fuel surcharges. According to CNBC, roughly three-quarters of the jet fuel consumed across Europe originates from Middle Eastern refineries, a dependence that has left the region acutely vulnerable to the current supply disruption.
Lufthansa stock rose 6% on Wednesday after the results were published.
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