Lufthansa Group has reported a net loss of €507 million ($752.6 million) for Q1, up from €298 million in the year-ago period. Lufthansa clarified that the loss is not as sharp as it seems as it includes a €300 million charge associated with a change in the value of fuel hedge options.
CFO Stephan Gemkow said the charge was "purely an accounting effect," and added that the "hedging options are taking a lot of pressure off our operating result."
First-quarter revenue was up 11.8% year-over-year to €6.4 billion while operating loss was €227 million, down from an operating deficit of €330 million in the year-ago period.
Lufthansa Passenger Airlines posted a first-quarter operating loss of €234 million, LH Group said in a preliminary earnings release.
Swiss International Air Lines earned a first-quarter operating profit of €17 million, Austrian Airlines incurred an operating loss of €64 million, bmi reported a €63 million operating deficit and Germanwings suffered an operating loss of €44 million.
"In addition to the effects of the catastrophes in Japan and the political unrest in North Africa, [LH Group's negative first-quarter] result can also be attributed to the rise in oil prices during the past months and the burdens brought about by the severe winter," the company stated.