Lufthansa posts higher-than-expected loss in Q1, post-COVID travel boom overshadowed by higher fuel costs

Germany’s Lufthansa (LHAG) on Thursday reported a larger-than-anticipated loss for the first quarter, as the positive effect on revenue from post-COVID travel demand boom has been offset by higher fuel costs.

The company’s adjusted loss before interest and taxes (EBIT) shrank to EUR 591 million during the first quarter from EUR 1.05 billion in the same period a year earlier.

Still, the median analyst estimate had pointed to a smaller quarterly loss – EUR 558 million.

Meanwhile, the air carrier’s revenue more than doubled to EUR 5.36 billion during the first quarter, while exceeding a consensus of analyst estimates of EUR 5.12 billion.

With COVID-19 restrictions eased, the number of passengers rose in both business and leisure travel segments, while demand for freight capacity remained high amid strained supply chains.

“The current level of bookings gives us confidence that our financial results will further improve in the coming quarters. We must pass through rising costs to customers,” Lufthansa’s Chief Financial Officer Remco Steenbergen was quoted as saying by Reuters.

As of 10:19 GMT on Thursday the shares of Deutsche Lufthansa AG (LHAG) were losing 1.99% (EUR 0.141) on the day to trade at EUR 6.959 on Xetra, while extending a slump from the previous trading session.