Lufthansa (LHAG) Stock Jumps 8% as Q1 Loss Comes in Better Than Expected

TLDR

• Lufthansa stock jumped over 8% after Q1 results beat analyst expectations
• Adjusted operating loss narrowed to €612M, better than the €659M forecast
• Revenue rose 8% to €8.7B, but missed analyst estimates of €9.3B
• The Iran war has added €1.7B in extra fuel costs so far in 2026
• Full-year 2026 outlook maintained, targeting profit well above 2025’s €1.96B

Lufthansa posted a narrower-than-expected first-quarter loss on Wednesday, and the stock responded — jumping more than 8% in early trading in Frankfurt.

Deutsche Lufthansa AG, LHA.DE

The German carrier reported an adjusted operating loss of €612 million for Q1, beating the €659 million loss analysts had forecast. It’s also an improvement on the €722 million loss recorded in the same period last year.

Revenue came in at €8.7 billion, up 8% year-on-year. That figure did fall short of analyst expectations of €9.3 billion, however.

The Middle East conflict is reshaping Lufthansa’s business in two directions at once. On one hand, it’s driving up jet fuel costs sharply. On the other, it’s rerouting passengers through Lufthansa hubs, boosting demand for both passenger and cargo operations.

The Iran war has added €1.7 billion in extra fuel costs so far this year. That’s a serious number. To deal with it, Lufthansa says it will raise ticket revenue, cut flights, and push through additional cost measures over the coming quarters.

Lufthansa has already removed 20,000 flights from its summer schedule to manage capacity concerns tied to the fuel shortage.

Outlook Held — With Conditions

Despite the fuel headwind, Lufthansa reaffirmed its full-year 2026 profit forecast. The group expects adjusted operating profit to come in well above the €1.96 billion it earned in 2025.

That last part matters. Cabin crew and pilot unions called strikes throughout April, costing the airline €150 million. Lufthansa had to issue two profit warnings in 2024 because of labour disruptions, so this remains a live risk.

Streichert also confirmed that fuel supplies at Lufthansa’s hubs are expected to be secure through June. For long-haul flights to Asia and Africa, the airline is preparing contingency plans that could include refuelling stopovers.

Analyst Reaction

Barclays analyst Andrew Lobbenberg said the Q1 beat was smaller than what rival Air France-KLM delivered last week. But he noted that maintaining guidance — given the €1.7 billion fuel bill increase and April strike disruption — showed “marked confidence in future unit revenues.”

Lufthansa is also working through a broader turnaround program, targeting a profit margin of 8% to 10% between 2028 and 2030.

The stock was up 6% to 8% in Frankfurt trading by mid-morning on Wednesday.

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