Lufthansa Cargo lifts Q1 profit 35% as Middle East crisis tightens supply

Lufthansa Cargo delivered a standout performance in the first quarter of 2026, emerging as one of the clearest bright spots in the Lufthansa Group's overall results. The logistics division recorded an Adjusted EBIT of €83mn, a significant jump from €62mn posted in the same period a year earlier, representing a 35% improvement and continuing the positive trend established through 2025.

Capacity was a key driver of the result. Lufthansa Cargo substantially expanded available cargo tonne-kilometres by seven percent in the first quarter compared to the prior year, supported by an increase in belly capacities aboard passenger aircraft as well as a broader rise in flight activity. Sales, measured in revenue cargo tonne-kilometres, grew by five percent over the same period. The cargo load factor edged down by 0.4% points to 59.1%.

Revenue at the logistics segment rose five percent to €876mn, up from €834mn in Q1 2025. Traffic revenue climbed three percent to €951mn from the prior year's €922mn, driven primarily by higher sales volumes even as yields came under modest pressure. Traffic revenue in the Middle East/Africa and Asia/Pacific regions performed particularly strongly, with overall traffic revenue reaching €821mn, a 5% increase on the previous year's €782mn.

On the yield side, Lufthansa Cargo reported that yields were 1.9% lower year-on-year across most traffic regions in the first quarter of 2026, decreasing in all regions except the Middle East/Africa. Towards the end of the quarter, however, the significant change in the market environment stemming from the conflict in the Middle East prompted a recovery in yields relative to previous quarters. A reduction in the volume of capacity available on the market and ongoing disruptions to global supply chains contributed to that late-quarter pick-up, particularly in the Asia/Pacific corridor, where business remained consistently strong.

Operating expenses at Lufthansa Cargo rose three percent to €813mn from €788mn in the prior year. This increase was mainly driven by the growth in belly capacities and higher flight-related costs, including fees, charges, and fuel-related expenses, reflecting the higher price environment. Higher charter costs also weighed on expenses. Partly offsetting these pressures, unit costs overall came in 4% below the prior year, thanks to lower maintenance expenses and consistent cost discipline, a significant contributor to the division's margin improvement.

Several strikes took place at Lufthansa Cargo during the first quarter of 2026, which the group identified as a headwind to the business during that period.

Looking ahead, the strong cargo business is expected to deliver an additional revenue increase for the Lufthansa Group through the rest of 2026, with Asia, Africa, and transatlantic routes anticipated to have a positive impact on revenue, partly as a result of the strong yield trend driven by higher demand.

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, acknowledged the division's role in the group's resilience, stating: "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."

CFO Till Streichert also highlighted the cargo segment's importance to the group's earnings position, noting: "The cargo business, which continues to perform well, provides additional support to the earnings situation."

The Lufthansa Group maintained its full-year 2026 outlook, with Adjusted EBIT expected to remain significantly above the prior year. The group acknowledged that uncertainty has increased, primarily due to rising kerosene costs and geopolitical risks, but expressed confidence that robust demand, network optimisations, cost discipline, and the continued strong performance of Lufthansa Cargo would collectively support its ability to deliver on its full-year targets.