Lufthansa, Germany's top airline, said Wednesday that it suffered a net loss in the first quarter of 2012.
The company said the soaring price of jet fuel more than offset a rise in passenger numbers.
The company posted a net loss of €397 million in the first three months of the year.
The net loss was around 22% lower than one year ago however.
But Lufthansa's operating loss of €381m was about twice as much as in 2011.
First quarter sales reached €6.6 billion -- 5.6% percent higher in a year-on-year comparison -- but this "could not offset additional costs, in particular for fuel," Lufthansa said.
The airline confirmed its 2012 forecast for stronger sales and an operating profit of around €500m.
The group said last month that it had transported a total of 21.9 million passengers in the first quarter, 4.8% more than in the same period a year earlier.
All of its airlines -- Lufthansa itself, low-cost carrier Germanwings, Swiss and Austrian Airlines -- contributed to growth, it added.
The cargo division, Lufthansa Cargo, saw the volume of freight transported fall by 9.3% to 426,000 tonnes in the wake of the global economic slowdown.
The German giant is undergoing an overhaul in the wake of fierce competition from budget airlines and said in February it aims to save €1.5 billion by 2014. Press reports say thousands of jobs would be cut in the process.
