Lufthansa Group significantly improves operating result in first quarter and maintains positive full-year outlook

• Total revenues increase by eight percent to 8.7 billion euros in the first quarter

• Adjusted EBIT improves by 110 million euros to -612 million euros

• Middle East crisis negatively impacts fuel prices while positively affecting demand in passenger airlines and cargo business

• Lufthansa Cargo continues positive trend, improving Adjusted EBIT by 21 million euros compared to prior year

• Lufthansa Technik achieves Adjusted EBIT of 158 million euros, a result on par with prior year

• Uncertainties for the full year increase; robust demand, network optimizations, and cost discipline mitigate higher kerosene costs

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

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, says:

“In the first quarter, we significantly improved on the previous year’s financial results, with Adjusted EBIT up by 110 million euros and net income up by 220 million euros. Group revenue rose by eight percent to 8.7 billion euros — a new record for a first quarter. 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.

But 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. However, 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. Complemented by a successful Lufthansa Cargo and Lufthansa Technik, together with our team of 110,000 employees, we will therefore — as so often in the 100 years of our history — emerge from this crisis even stronger.”

Significantly improved result in first quarter 2026

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.

Lufthansa Technik and Lufthansa Cargo with strong earnings contribution

Demand for maintenance, repair, and overhaul services as well as other products from Lufthansa Technik remains consistently high. Revenue increased by 12 percent compared to the prior year to 2.3 billion euros (prior year: 2.0 billion euros), with revenue from business with external customers rising by as much as 19 percent. Material shortages in the global market weighed on the result, as did personnel shortages and costs for necessary qualification measures, so that the operating result (Adjusted EBIT) of 158 million euros remained at prior-year level (prior year: 161 million euros).

Lufthansa Cargo substantially expanded its capacity by seven percent in the first quarter compared to the prior year. This was primarily due to increased belly capacity, including through the marketing of ITA Airways’ cargo space.

Against the backdrop of the Middle East crisis, momentum in the air cargo business continued to accelerate towards the end of the quarter. Particularly in March, yields improved further compared to the prior year. At the same time, unit costs were four percent below the prior year thanks to lower maintenance expenses and consistent cost management. Overall, Lufthansa Cargo achieved a significantly improved Adjusted EBIT of 83 million euros (prior year: 62 million euros).

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).

Further information

Further information on the results of individual business segments will be published in the quarterly report. This will be published at the same time as this press release at https://investor-relations.lufthansagroup.com/en/investor-relations.html

The traffic figures will also be published at Traffic figures - Lufthansa Group Investor Relations