Lufthansa Group cuts losses but issues fuel availability warning

Lufthansa Group posted encouraging results among its latest first quarter update but equally warned of “potentially reduced fuel availability later in the year” as an additional risk to the company.

On May 5, 2026, Lufthansa Group said net income had improved against the same period last year by 25% from a loss of around $1 billion to a loss of $780 million, while Adjusted EBIT improved by $129 million to a loss of $718 million.

Lufthansa Group’s revenue rose by 8% to $10.2 billion, which the company described as “a new record for a first quarter”.

The company highlighted that adjustments in flight schedules because of the war in Iran had proved successful, particularly on Asia and Africa routes. Lufthansa Group airlines kept their capacity nearly stable compared to the first quarter of the prior year.

“We are achieving what we set out to do and delivering on what we promised. From our customers’ perspective, this applies in particular to our product and fleet renewal. With seven new aircraft deliveries, including five long-haul aircraft, we are fully on track in the first quarter of the year,” said Carsten Spohr, CEO of Lufthansa Group.

Lufthansa GroupThe complications surrounding fuel availability were also raised in Lufthansa Group’s first quarter update but significantly the company said that it “maintains its guidance for the full year to achieve an operating result significantly above the prior year”.

In April 2026, Lufthansa Group closed its subsidiary carrier Lufthansa CityLine and took a series of initiatives to reduce costs “in light of the sharply increased kerosene costs and geopolitical instability”.

Warnings over fuel availability

In the latest statement, Spohr said the “ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel, and for our company as well”.

“We are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development,” said Spohr.

According to Lufthansa Group, fuel costs for the current year are already hedged at approximately 80%, but the increased prices currently lead to additional costs of almost $2 billion in 2026.

“While no restrictions in kerosene supply are currently expected at any of the Lufthansa Group hubs, potentially reduced fuel availability later in the year represents an additional risk factor,” warned the company.

The group said it intends to offset this “additional financial burden in the following quarters through increased revenue from ticket sales, optimized network planning, and further cost-saving measures”.

Lufthansa Cargo and Lufthansa Technik hold the fort

Lufthansa Group also highlighted the performance of subsidiaries Lufthansa Cargo and Lufthansa Technik.

Demand for maintenance, repair, and overhaul services as well as other products from Lufthansa Technik “remained consistently high” and Lufthansa Cargo “substantially expanded its capacity” by 7% in the first quarter compared to the prior year.

“The current situation compels us to rigorously examine every lever available to reduce costs, improve efficiency, and mitigate risks in order to maintain our ability to act decisively. Our annual profit will likely be lower than originally anticipated. 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,” said Till Streichert, CFO at Lufthansa Group.

He added: “The cargo business, which continues to perform well, provides additional support to the earnings situation. Provided there are no fuel supply bottlenecks or further strikes, I therefore remain confident, despite increased risks, that we can achieve a full year result significantly above prior-year levels.”

Key figures from the update available on the Lufthansa Group website.

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