Key Takeaways
- Lufthansa shares climbed more than 8% following first-quarter earnings that surpassed Wall Street projections
- The carrier’s adjusted operating deficit came in at €612M, outperforming the consensus estimate of €659M
- Quarterly revenue climbed 8% to €8.7B, though it fell short of the €9.3B analyst consensus
- Middle East conflict has inflated fuel expenses by €1.7B through the first quarter of 2026
- Management reaffirmed full-year 2026 guidance, projecting profit significantly above 2025’s €1.96B result
Shares of Lufthansa surged more than 8% during Wednesday’s Frankfurt trading session after the airline delivered first-quarter results that exceeded market expectations.
The Frankfurt-based aviation group disclosed an adjusted operating deficit of €612 million for the opening quarter, compared to the analyst consensus calling for a €659 million loss. The figure also represents a marked improvement over the €722 million deficit posted during the comparable 2025 period.
Quarterly revenue reached €8.7 billion, representing an 8% year-over-year increase. However, this topline number missed Wall Street’s €9.3 billion projection.
The escalating situation in the Middle East is creating a dual impact on Lufthansa’s operations. While jet fuel expenses have climbed dramatically, the geopolitical turmoil has simultaneously redirected traffic through the carrier’s European hubs, strengthening demand across both passenger and freight segments.
The ongoing Iran conflict has generated an additional €1.7 billion in fuel expenditures during the year to date. Lufthansa plans to offset this substantial headwind through a combination of fare increases, schedule adjustments, and accelerated cost-reduction initiatives in upcoming quarters.
The airline has already eliminated 20,000 flights from its summer timetable as part of capacity management strategies addressing fuel availability constraints.
Full-Year Guidance Unchanged — But With Caveats
Notwithstanding the fuel cost pressures, Lufthansa stood by its 2026 annual profit projection. Management anticipates adjusted operating profit will substantially exceed the €1.96 billion achieved in 2025.
CFO Till Streichert emphasized, however, that this forecast assumes “there are no fuel supply bottlenecks or further strikes.”
This qualification carries weight. Industrial action by cabin personnel and pilots throughout April resulted in €150 million in lost earnings. The carrier was forced to issue two profit warnings during 2024 due to labour disputes, making union relations an ongoing concern.
Streichert also stated that fuel availability at the airline’s primary hubs should remain stable through June. For intercontinental services to Asian and African destinations, Lufthansa is developing backup strategies that may involve intermediate refuelling stops.
Wall Street Weighs In
Barclays analyst Andrew Lobbenberg observed that while Lufthansa’s Q1 outperformance was more modest than Air France-KLM’s recent results, the decision to maintain guidance — considering the €1.7 billion fuel expense escalation and April strike impact — demonstrates “marked confidence in future unit revenues.”
CEO Carsten Spohr echoed this sentiment, stating the company remains “resilient in our ability to absorb these impacts.”
The carrier continues executing a comprehensive restructuring initiative aimed at achieving an 8% to 10% profit margin between 2028 and 2030.
Lufthansa shares were trading 6% to 8% higher in Frankfurt by Wednesday’s mid-morning session.
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