Lufthansa’s logistics division reported higher revenues, cargo traffic and operating profit in the first quarter, partly supported by capacity shortages caused by the Middle East conflict.

The division, which includes Lufthansa Cargo, time:matters, Jettainer, HeyWorld and a 50% stake in AeroLogic, increased revenues by 5% to €876m.

Earnings before interest and tax rose 40% to €83m, while cargo traffic improved 7% to 2.2bn revenue cargo tonne km.

The conflict in the Middle East led to capacity shortages as major regional cargo carriers grounded parts of their operations. Airlines with freighters active on Asia-Europe lanes benefited from the tighter market.

Lufthansa Cargo also benefited from a 7% capacity increase, partly due to the marketing of ITA Airways capacity.

The group said the cargo business gained further momentum toward the end of the quarter as reduced market capacity and global supply chain disruption supported yield recovery.

This trend was particularly visible in Asia Pacific, where demand remained strong.

However, some gains were offset by higher operating costs, including fuel price increases, as well as strike activity during the quarter. Yields remained 1.9% below the previous year, while cargo load factor was stable at 64.4%.

Lufthansa Group still expects to improve full-year profit in 2026, though it said the outlook has become more uncertain following the Middle East conflict.