Stock Markets May 6, 2026 01:06 AM

Lufthansa narrows Q1 adjusted operating loss, keeps 2026 profit forecast despite fuel and geopolitical pressures

Strategic hedging and contained labour disruptions helped limit the hit from higher kerosene costs as the carrier reiterates its 2026 guidance

By Sofia Navarro

Lufthansa posted an adjusted operating loss of 612 million euros for the January-March quarter, better than the 659 million-euro loss expected by analysts compiled by the group and an improvement on the 722 million-euro adjusted loss recorded a year earlier. The carrier cited strategic hedging and largely contained labour disruption as factors mitigating the rise in jet fuel prices, which it said were being driven higher by the crisis in the Middle East even as demand increased from passengers rerouting through its hubs. Lufthansa reaffirmed its 2026 outlook for a materially higher adjusted operating profit than the 1.96 billion euros reported in 2025, while noting there is increased uncertainty.

Lufthansa narrows Q1 adjusted operating loss, keeps 2026 profit forecast despite fuel and geopolitical pressures

Key Points

  • Lufthansa posted an adjusted operating loss of 612 million euros in Q1 (January-March), beating the 659 million-euro loss projected by a Lufthansa-compiled analyst poll and improving on the 722 million-euro adjusted loss in the same quarter last year.
  • Strategic hedging and largely contained labour disruptions helped the airline mitigate the impact of rising jet fuel costs.
  • The group maintained its 2026 outlook for a significantly higher adjusted operating profit than the 1.96 billion euros earned in 2025, while noting increased uncertainty.

Lufthansa reported an adjusted operating loss of 612 million euros for the first quarter ended March, a result that came in ahead of the 659 million-euro loss projected by a Lufthansa-compiled analyst poll. The outcome also represents an improvement compared with an adjusted operating loss of 722 million euros in the same quarter a year earlier.

The airline attributed part of that relative outperformance to strategic hedging programs that helped blunt the impact of rising jet fuel costs. The company said labour disruptions were kept largely under control during the period, assisting operational stability.

At the same time, Lufthansa highlighted that the crisis in the Middle East had put upward pressure on kerosene prices. The group noted that this same dynamic had supported demand, as travellers opted to reroute through the carrier's hubs, increasing passenger flows despite the fuel cost headwind.

Management left its 2026 guidance unchanged. The company reiterated its expectation of a significantly higher adjusted operating profit in 2026 versus the 1.96 billion euros it recorded in 2025, while acknowledging that uncertainty has risen.

For reference, the exchange rate used in reporting was $1 = 0.8534 euros.

The quarter's figures and the decision to hold the 2026 forecast reflect a balancing of offsetting factors set out by the group: hedging and manageable labour conditions on one side, and higher kerosene costs along with geopolitical uncertainty on the other.

Investors and market participants will likely weigh the maintained guidance against the stated increase in uncertainty and the potential for further pressure on fuel costs. The company did not provide additional numerical detail beyond the adjusted operating loss figures and its comparative 2025 operating profit in the materials referenced here.


Contextual note: The company described both higher fuel costs driven by the Middle East crisis and increased passenger demand from rerouting; those two developments were presented together by the company as simultaneous effects of the geopolitical situation.

Risks

  • Rising kerosene prices driven by the crisis in the Middle East could continue to pressure operating margins - this primarily affects the aviation and energy-linked cost structures.
  • Increased uncertainty noted by the company may translate into volatility for demand or costs, impacting airline financial performance and market expectations.
  • Labour disruptions, while reported as largely under control in the quarter, remain a potential source of operational risk for the aviation sector if conditions change.

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