Deutsche Lufthansa AG has issued a warning regarding mounting risks to its profit outlook, primarily driven by a significant increase in fuel costs. The airline group anticipates an additional €1.7 billion in fuel expenses for 2026, which it aims to offset through higher ticket revenues, optimized network planning, and unspecified efficiency measures. This muted profit outlook was announced as the airline reported its latest earnings.
In the second quarter of 2026, Lufthansa's revenue rose by 8% year-on-year to €11.1 billion. However, its operating profit (Adjusted EBIT) saw a substantial decline to €383 million, compared to €870 million in the prior year. The main reasons for this decrease were fuel costs, which were approximately €750 million higher than the previous year, and a minimum of €150 million in financial burdens from strikes. Despite these challenges, improved yields, particularly on Asian routes, helped partially offset the negative impacts.
CFO Till Streichert noted that the second quarter was marked by exceptionally high fuel costs and geopolitical uncertainty. He stated that the company is confident in mitigating a significant portion of these cost increases through strategy execution, cost discipline, network optimizations, and strong demand. However, the increased volatility of fuel prices and shorter booking cycles in passenger travel are making forecasting more difficult, leading the group to project a full-year Adjusted EBIT range of €1.7 billion to €2.2 billion.
Lufthansa also reported that the conflict in the Middle East has contributed to the sharp rise in kerosene prices, with fuel costs for network airlines increasing by over €600 million year-on-year. The need to avoid certain airspaces has also resulted in longer flight times, higher consumption, increased staff hours, and greater maintenance cycles. The company is investing in a fleet modernization program to mitigate long-term risks, but the immediate impact of fuel price volatility remains a challenge.
Furthermore, there is a concern about a potential kerosene supply crunch later in the year, particularly if the conflict in the Middle East, specifically the blocking of the Strait of Hormuz, persists. Lufthansa had already canceled approximately 20,000 short-haul flights through October to cut fuel consumption.
