Switzerland's national airline, Swiss International Air Lines, concluded the first quarter of 2026 with an operating result significantly higher than the previous year's figure.
Despite massive geopolitical tensions in the Middle East and operational bottlenecks, the airline generated an adjusted EBIT of 30,0 million Swiss francs. By comparison, this figure amounted to only 3,3 million francs in the first quarter of the previous year. Operating revenues remained stable at 1,22 billion francs, even though the airline had to reduce its capacity due to various external factors. However, according to the management, this financial success in the first quarter should only be considered a limited indicator for the remainder of the year. While one-off effects such as a surge in demand on Asian routes boosted revenues in March, the second quarter is expected to be significantly impacted by drastically increased fuel prices.
The March effect and the delayed cost development
The positive results for the first quarter were heavily influenced by developments in March. According to CFO Dennis Weber, the conflict in the Middle East led to a noticeable shift in global traffic flows. As passengers increasingly chose routes via European hubs to avoid the crisis regions, Swiss benefited from high demand, particularly for connections to Asia. This surge in demand coincided with a reduced supply, which boosted average revenue per ticket.
A key factor in the strong quarterly result is the time lag with which market price changes are reflected in the balance sheet. Although the price of kerosene temporarily climbed to almost double its pre-war level as a result of the armed conflict in Iran, these costs did not yet fully impact the first quarter. Through long-term price hedging, Swiss was able to partially mitigate the immediate effects. Nevertheless, Weber warns that the burden will increase significantly in the second quarter of 2026, as the more expensive fuel volumes gradually replace the cheaper inventories on the books. According to the CFO, without this delayed cost impact, the first-quarter result could have been considerably lower.
Operational hurdles: Engine shortage and staffing shortages
Despite its financial recovery, Swiss is struggling with significant operational difficulties. Traffic volume in the first quarter declined slightly, reflected in a 7,1 percent drop in flights to approximately 29.600. The number of passengers carried fell minimally by 0,4 percent to 3,7 million. A major reason for the reduced capacity is the limited availability of engines. Global supply chain disruptions and increased maintenance costs mean that parts of the fleet cannot be deployed as planned.
Additional shortages of cockpit crew are exacerbating the situation. The airline is forced to adjust its flight schedule to available resources to avoid jeopardizing the overall network's stability. Nevertheless, the load factor for the remaining flights was increased. The seat load factor improved by 3,4 percentage points, as sold seat kilometers increased by 0,8 percent despite the reduced capacity. This indicates efficient use of existing capacity but also underscores the pressure the system is under.
Stability and punctuality in the crossfire of global events
The reliability of flight operations suffered during the reporting period due to external factors. Departure punctuality fell to 75,2 percent. This was primarily due to strikes in other Lufthansa Group home markets and the far-reaching effects of the Middle East conflict, which led to diversions and airspace closures. While flight schedule stability was maintained at a high level of 97,4 percent, the airline had to adjust numerous routes at short notice.
CEO Jens Fehlinger emphasizes that the airline must become simpler and more efficient to survive in this volatile environment. A key component of the future strategy is the conclusion of a new collective bargaining agreement (CBA) for pilots. The goal is to increase productivity in the cockpit while simultaneously addressing the workforce's desire for better flight planning. Only through a structural improvement of its cost base can Swiss compete in the long term against international competitors, some of whom operate under less burdensome regulatory or geopolitical conditions.
Summer outlook: Robust demand in the premium classes
For the upcoming 2026 summer season, management is cautiously optimistic about bookings. The trend towards last-minute bookings continues unabated, making planning more difficult for the airline. However, the continued high demand in premium classes – Business and First Class – is striking. Business travelers and high-spending vacationers, in particular, appear to be increasingly utilizing Swiss's services, which is supporting average revenues.
Special attention remains focused on the Asian market. Demand to and from Asia remains robust, with Swiss benefiting from its positioning as a quality carrier. To maintain a stable flight schedule despite the dynamic fuel supply situation and the uncertain situation in the Middle East, the airline is working closely with the Lufthansa Group and national authorities. Scenario analyses are being conducted to ensure a swift response to supply bottlenecks or sudden airspace closures.
Focus on customer satisfaction and service quality
Despite enormous cost pressures and the need for increased efficiency, Swiss is maintaining its investments in the product. The airline reports improvements in customer satisfaction, achieved through enhanced service and more modern cabin amenities. CEO Fehlinger emphasizes that cost savings must not come at the expense of the high-quality travel experience, as differentiation through quality remains a key competitive advantage for the airline.
The implementation of the cost-saving program launched before the crisis will therefore be pursued rigorously to ensure financial flexibility for future investments. For Swiss, 2026 will thus remain a balancing act between economic discipline and the ambition to survive as a premium carrier in a crisis-ridden global market.