Lufthansa maintains outlook despite €1.7bn fuel cost hit
Lufthansa has maintained its 2026 outlook despite a projected €1.7 billion rise in jet fuel costs linked to the Middle East conflict, with the airline relying on higher fares, network adjustments, and cost cuts to offset the impact
Lufthansa has reaffirmed its full-year outlook after reporting stronger-than-expected first-quarter results, despite mounting pressure from soaring jet fuel prices and continued disruption linked to the conflict in the Middle East.
The airline group said kerosene prices had risen by more than 80% since the start of the Iran conflict in February, with the company forecasting an additional €1.7 billion in fuel costs this year.
Lufthansa said it planned to mitigate the impact through fare increases, network optimisation, hedging, and cost-saving measures.
The carrier added that travel demand remained “robust”, with passengers increasingly rerouting through Lufthansa hubs rather than airports in the Gulf region.
The aviation group had already cut 20,000 flights from its summer schedule amid fuel supply concerns and operational constraints.
Executives also said contingency plans were being prepared for additional refuelling stopovers on long-haul services to Asia and Africa if fuel shortages intensify.
Chief Executive Carsten Spohr described the current environment as an “enormous challenge” for global aviation but said Lufthansa’s multi-hub and multi-airline structure provided greater operational flexibility.
Chief Financial Officer Till Streichert said the company was “rigorously” reviewing costs and risk mitigation measures while continuing to monitor fuel supply stability across Europe.
The airline reported an adjusted operating loss of €612 million for the first quarter, improving on both analyst expectations and the €722 million loss recorded during the same period last year. Revenue rose 8% year on year to €8.75 billion.
Lufthansa said it remained around 80% hedged on fuel requirements for 2026, helping cushion some of the market volatility. However, executives warned that additional strikes or fuel bottlenecks could still affect the group’s outlook.
The carrier is also urging European regulators to consider temporary flexibility around sustainable aviation fuel rules and airport slot regulations should fuel shortages worsen later in the year.