Lufthansa Group maintains outlook: Adjusted EBIT for full year 2026 still expected to be significantly above prior year.

Lufthansa Group increased its revenue in the first quarter of 2026 by eight percent year-on-year to 8.7 billion euros (prior year: 8.1 billion euros). The company posted an operating loss (Adjusted EBIT) of 612 million euros, a significant improvement compared to the previous year (prior year: -722 million euros).

The Adjusted EBIT margin improved to -7.0 percent (prior year: -8.9 percent). The net income rose to -665 million euros (prior year: -885 million euros). Adjusted Free Cash Flow increased by 65 percent to 1.4 billion euros (prior year: 835 million euros).

Network airlines benefit from high demand and network flexibility

The Group's Network Airlines kept their capacity nearly stable compared to the first quarter of the prior year. Slight growth in long-haul traffic compensated for minor capacity reductions in short- and medium-haul segments. Seat load factor increased to 81.9 percent, and unit revenues rose by 3.3 percent compared to the prior year. Both metrics were primarily driven by a strong surge in demand in March following capacity reductions via Middle Eastern hubs. This also significantly overcompensated for the fact that some connections to destinations in the Middle East could no longer be served.

Lufthansa Group's airlines adjusted their flight schedules in response to increased demand, particularly on Asia and Africa routes, adding additional flights. The strong demand was also reflected in higher yields in the premium segment. Unit costs excluding fuel and emission expenses increased by 2.5 percent compared to the prior year. This resulted from lower-than-planned capacity growth while costs increased due to higher personnel expenses and depreciation. Overall, the Network Airlines' Adjusted EBIT amounted to -605 million euros, representing an improvement of 135 million euros compared to the prior year.

Point-to-Point Airlines shift capacity from Gulf region to Europe

Eurowings increased its capacity by five percent compared to the first quarter of the prior year. Unit revenues rose by 6.8 percent, primarily due to strong European business in March. Against the backdrop of the Middle East crisis, Eurowings has temporarily removed flights to the previously high-growth Gulf region from its program.

Unit costs excluding fuel and emission expenses increased by 5.1 percent, primarily due to higher maintenance expenses and costs from weather-related flight irregularities.

The equity result from the SunExpress joint venture was 10 million euros below the prior year due to the challenging market situation in Turkey.

Overall, Adjusted EBIT in the Point-to-Point Airlines segment decreased by 14 million euros to -215 million euros in the first quarter of 2026.

Increased Adjusted Free Cash Flow further reduces net debt

Operating cash flow rose to around 2.1 billion euros in the first quarter (prior year: 1.8 billion euros). The development is primarily based on a strong increase in liabilities due to increased business activity. Combined with reduced net capital expenditures thanks to proceeds from aircraft sales, this led to an improvement in Adjusted Free Cash Flow to 1.4 billion euros (prior year: 835 million euros).

The Group also maintained a strong balance sheet in the first quarter of 2026. Net debt of 5.3 billion euros was significantly below the level at year-end 2025 (December 31, 2025: 6.4 billion euros). Net pension obligations amounted to 1.9 billion euros and were thus at the level of year-end 2025 (December 31, 2025: 1.9 billion euros). At the end of March 2026, the company had liquidity of 10.3 billion euros available (December 31, 2025: 10.7 billion euros).

Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG: "We are satisfied with the first quarter: the earnings improvement of 110 million euros already represents a substantial portion of what we had planned for the full year. At the same time, 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. And 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."

Outlook under increased uncertainty: opportunities and risks persist

Global demand for air travel remains high and continues to prove resilient even in times of crisis. Against this backdrop, Lufthansa Group again expects a strong travel summer. Additional momentum comes from shifts in passenger flows: travelers are increasingly shifting from airports in the Gulf region to Lufthansa Group hubs against the backdrop of the Middle East crisis.

At the same time, the current closure of the Strait of Hormuz is leading to a shortage in kerosene supply and thus to a significant increase in kerosene prices. This places a substantial burden on the cost base of Lufthansa Group airlines. Although kerosene requirements for the current year are already approximately 80 percent hedged through fuel price hedging via derivatives on various petroleum products, the increased kerosene prices currently lead to additional costs of 1.7 billion euros in 2026. The Group 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. 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.

Due to these uncertainty factors, the risk-opportunity profile has shifted toward risks. Nevertheless, Lufthansa Group maintains its guidance for the full year to achieve an operating result (Adjusted EBIT) significantly above the prior year (1,960 million euros).