Lufthansa Group’s stable economic development in the first quarter
The Lufthansa Group recorded a significant improvement in its operating result in the first quarter and remained on track for a successful full year despite various global uncertainties. Group revenue increased by eight percent year-on-year to €8.7 billion, setting a new record for the first quarter. Adjusted EBIT improved by €110 million to -€612 million, compared to -€722 million in the previous year. This result reflects a positive trend, driven not only by revenue growth but also by higher load factors and increased revenue in the premium segment.
Developments show that despite the unstable political situation in the Middle East and the associated challenges such as rising fuel prices and operational restrictions, the Lufthansa Group’s business model demonstrates sustainable stability. This is supported in particular by its strong resilience, which manifests itself in above-average hedging against fuel price fluctuations and a flexible multi-hub and multi-airline strategy, strengthening the Group’s adaptability in a changing market environment.
Impact of the global situation on business areas and strategic adjustments
The ongoing conflicts in the Middle East have had various impacts on the Lufthansa Group’s business. On the one hand, they have led to an increase in kerosene prices, which is putting pressure on the airlines’ cost base. Despite hedging approximately 80 percent of kerosene requirements for 2026, additional costs of around €1.7 billion are being incurred. These costs are being offset by strategic measures such as improved network planning, cost discipline, and increased revenues.
On the other hand, the crisis also led to increased demand in the passenger and air freight segments. Passenger flows are increasingly shifting from airports in the Gulf region to the Lufthansa Group’s hubs, particularly on routes to Asia and Africa. As a result, the network airlines were able to increase their load factor to 81.9 percent and boost unit revenues by 3.3 percent. A similar trend is evident in air freight, where Lufthansa Cargo expanded its capacity by seven percent and average revenues continued to rise. This led to a significant increase in adjusted EBIT in this segment to €83 million.
Point-to-point airlines like Eurowings responded flexibly to these changes by increasing their capacity by five percent and focusing more on their European operations. Flights to the Gulf region were temporarily suspended to utilize capacity more efficiently and to adapt to the altered market conditions. Despite rising maintenance costs and weather-related flight disruptions, cost development remained manageable.
Stable performance at Lufthansa Technik and financial figures
Lufthansa Technik also benefited from continued strong demand for maintenance, repair, and overhaul services. Revenue increased by 12 percent, with external customers even recording a 19 percent rise. Despite challenges posed by material shortages and increased personnel costs, adjusted EBIT was maintained at the previous year’s level. This underscores Lufthansa Technik’s solid operational efficiency and market position in a global environment with complex supply chains.
In the first quarter, operating cash flow rose to approximately €2.1 billion, driven by a significant increase in liabilities due to increased business activity. Lower net investments resulting from aircraft sales improved adjusted free cash flow by 65 percent to €1.4 billion. Net debt decreased significantly to €5.3 billion, while financial liquidity remained robust at €10.3 billion. Net pension liabilities remained stable at €1.9 billion. Together, these factors demonstrate a strong balance sheet position, ensuring flexibility and financial stability even in challenging times.
Challenges and opportunities in the full-year outlook for 2026
Despite positive first-quarter results, the Lufthansa Group faces increased uncertainty for the current year, stemming from geopolitical tensions and a volatile commodity market. The changed market situation, particularly the closure of the Strait of Hormuz and the associated shortages in kerosene supply, poses significant risks. Furthermore, fuel supply bottlenecks or potential labor market-related strikes could further impact operations.
At the same time, global demand for air travel remains robust and stable, suggesting a strong summer travel season. The flexible adaptation of the route network and the diversification of services across various hubs and airlines form an important basis for maintaining a balanced risk-reward profile. In particular, the continued success in the air freight business contributes significantly to supporting profitability.
The Lufthansa Group therefore remains committed to its goal of achieving a significantly higher adjusted EBIT (operating result) in 2026 compared to the previous year. The company plans to offset the additional financial costs primarily through increased revenues, efficient network optimizations, and strict cost discipline. This realistic assessment of current risks goes hand in hand with a strategic direction that leverages growth potential while simultaneously relying on a robust financial structure.
Summary and outlook
The first quarter of 2026 marks an important step for the Lufthansa Group towards sustainable recovery and growth. The significant improvement in operating profit and Group revenue, despite a challenging geopolitical environment, demonstrates the Group’s stability and adaptability, supported by a broad product range and a smart fleet strategy.
Challenges such as sharply increased kerosene prices and potential supply bottlenecks are forcing management to implement strict cost control and continuously optimize the network. At the same time, changes in passenger flows and increased air freight activity offer valuable opportunities that can positively impact the business.
Overall, the combination of financial stability, strategic flexibility, and a strong team of over 110,000 employees bodes well for a confident outlook for the remainder of the fiscal year. The Lufthansa Group aims to achieve a result significantly higher than the previous year, even under the current complex conditions, and to consolidate its market-leading position in global air transport.
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