German airline Lufthansa has reported an operating loss of €336m for the first three months of 2019, due to soaring fuel costs along with excess capacity in Europe.

Ticket prices significantly fell across the group and said fuel costs amounting to €202m contributed to the loss, shares were down on Tuesday.

On Tuesday morning stock was down by 1%, which is far greater than analysts had expected as the company underperformed by around 2%.

Lufthansa operating profit was reported at €52m for the same period as last year.

Lufthansa finance chief Ulrik Svensson said, “We are seeing good booking levels for the quarter ahead.

“At the same time, we have substantially reduced our own capacity growth. And with a reduction in growth also projected for the European market as a whole, we expect unit revenues to increase again in the second quarter.

“This should be further buoyed by the still-strong demand on our long-haul routes, especially to Asia and North America.”

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