Lufthansa faces $2 billion fuel cost hit from Middle East conflict

Lufthansa, the German airline, reported better-than-expected first-quarter results but warned that rising kerosene costs due to the Middle East conflict will add $2 billion to its fuel bill. The company maintained its full-year profit outlook despite the geopolitical tensions driving up energy prices. The airline's performance was bolstered by strong demand and cost-cutting measures, though the fuel price surge poses a significant headwind. The conflict has disrupted supply chains and increased insurance costs for flights to affected regions. Lufthansa's shares rose slightly on the news as investors focused on the narrower-than-expected loss. The airline expects to offset some of the fuel cost increases through higher ticket prices and efficiency improvements. The Middle East situation remains volatile, with potential further impacts on aviation fuel costs and route planning.