.jpg)
1 hour ago
1
Article content
(Bloomberg) — Deutsche Lufthansa AG posted a smaller-than-expected loss in the first quarter as strong demand for longhaul flights helped offset volatile fuel costs and disruption from labor strikes.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The adjusted loss before interest and tax narrowed by 15% to €612 million, Lufthansa said Wednesday, beating the average analyst estimate for a €650 million deficit. Revenue of €8.7 billion also came in above expectations.
Article content
Article content
Lufthansa said that a slight growth in longhaul traffic compensated for what it called minor capacity reductions in short- and medium-haul travel. While the company predicted a strong travel summer, overall “the risk-opportunity profile has shifted toward risks,” Lufthansa said in a statement.
Article content
Article content
Still, the company confirmed its full-year outlook for earnings to again be “significantly above” last year’s figure. More travelers are shifting from airports in the Gulf region to Lufthansa hubs against the backdrop of the Middle East crisis, the company said, providing a boost to some long-distance routes.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The effective closure of the Strait of Hormuz has increased concerns over fuel shortages ahead of the busy summer travel season. Airports across Europe could start to face fuel shortages as early as June, according to the International Energy Agency.
Article content
While Lufthansa said it has hedged about 80% of its 2026 fuel needs, there’s a potential for reduced fuel availability later in the year that it called an additional risk factor.
Article content
Lufthansa said it plans to offset the financial burden from rising fuel prices — which the airline group put at €1.7 billion for the year — with higher revenue from ticket sales, optimized network planning, and further cost-saving measures that it didn’t specify.
Article content
To save fuel costs, the company has already brought forward the shutdown of regional carrier CityLine and decommissioned older, more fuel-intensive aircraft, resulting in roughly 20,000 flight cuts.
Article content
Europe’s largest aviation group had a turbulent start to the year, with multiple walk outs from pilots and cabin crew disrupting operations. The pressures come as Chief Executive Officer Carsten Spohr is trying to boost profitability in a crowded European market.
Article content
The company plans to cut 4,000 administrative jobs by 2030 and shift capacity from its cost-intensive flagship airline to newer units such as Discover and City Airlines, where crew costs can be up to 40% lower.
Article content
English (US)