Lufthansa reported on April 30, 2019, a net loss of €342 million in the first quarter of the year due to excess capacity in the European airline market but especially to the rise of fuel prices.

The German group expects to spend €6.8 billion on fuel in 2019, against €6.1 billion in 2018 after an increase of €850 million. Nonetheless, Lufthansa confirms its annual forecasts, with an adjusted operating margin between 6.5% and 8%.

Growth prospects, which were initially expected to reach 2% this year for the low-cost segment, will be put on hold both at Eurowings and at its daughter company, Brussels Airlines.

“We are confident, though, that we will see a recovery in our unit revenues as early as the second quarter, says Ulrik Svensson, Chief Financial Officer of Lufthansa, adding “our confidence is based above all on our favorable booking levels for the months ahead.”

Lufthansa had already announced it expected a weak first quarter of 2019 earlier in the month, reporting an adjusted operating loss (EBIT) of €336 million over the period against a positive EBIT of €52 million the previous year.

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When Lufthansa was forecasting its financial results for 2019, it expected the year to begin slower than the prior-year. Well, the forecast was correct, as the German giant falls from profitability to millions in losses.