STORY: Lufthansa held its 2026 profit outlook on Wednesday.
The German airline pledged to offset a $2 billion jet-fuel hit to costs through hedging, higher fares and cost cuts.
The news sent shares up over 8% even as labor strikes cloud the year ahead.
The airline said the crisis in the Middle East, which had sent jet-fuel prices surging due to a drop in supply, was boosting demand as travelers rerouted via its hubs.
Although the carrier is preparing for potential disruptions.
It has already cut 20,000 flights this summer to limit capacity amid jet fuel shortage worries.
Lufthansa reported an adjusted operating loss of $717 million in the January-March period.
It's a better result compared to analyst projections and an improvement from a year ago.
European airlines are expected to be shielded from the initial fallout of the jet fuel shock in the first quarter.
Though some, like Air France, have adjusted their outlooks with jet fuel prices set to remain high.
Lufthansa's chief financial officer said the outlook would be maintained "provided there are no fuel supply bottlenecks or further strikes."
Elsewhere, the airline's cabin crew and pilot unions called for strikes throughout April, which cost the airline around $176 million.
Lufthansa issued two profit warnings in 2024 due to costs linked to labor disruptions.
