Lufthansa Airlines expects strong demand for tourism and announces a narrowing of losses in the first quarter.

Lufthansa, the German airline, stated that despite the outbreak of war in Iran, strong performance is expected in summer tourism and the company also announced a narrowing of losses in the first quarter. The German aviation group said on Wednesday that its preferred profit indicator - adjusted EBIT (earnings before interest and taxes) - stood at a loss of 612 million euros, compared to a loss of 722 million euros in the same period last year. The company's revenue for the quarter grew by 8% to 8.7 billion euros, below the average expectation of 9.335 billion euros. The group said that the Middle East conflict is boosting demand for its passenger and cargo business. In addition to Lufthansa, the group also owns Swiss International Air Lines, Austrian Airlines, Brussels Airlines, ITA Airways, and Eurowings. However, the company mentioned that the war has also driven up fuel prices, resulting in an additional cost of 1.7 billion euros so far this year. Lufthansa plans to offset this impact in the coming quarters by increasing ticket sales revenue and reducing flight and other costs. Lufthansa warned that the blockade of the Strait of Hormuz could result in a shortage of aviation fuel, posing an additional risk to the group. However, the company expects that none of its hub airports will currently be affected. Lufthansa has hedged about 80% of the fuel it will need this year. The company reaffirmed its expectations that this year's adjusted EBIT will be significantly higher than the 1.96 billion euros announced in 2025.