Deutsche Lufthansa AG has issued a warning regarding increasing risks, including a substantial surge in fuel costs and a potential kerosene supply crunch later in the year. This situation has prompted the airline to adopt a more muted profit outlook and actively seek additional savings. The airline group anticipates an additional burden of €1.7 billion for the year due to rising fuel prices.
In response, Lufthansa plans to mitigate these financial pressures through increased revenue from ticket sales, optimized network planning, and accelerated operational streamlining measures. The company is retiring inefficient aircraft, such as the Canadair CR-9 sub-fleet and Airbus A340-600s, and temporarily grounding some Boeing 747-400s to reduce fuel consumption and fleet complexity. These measures are expected to significantly impact fuel cost savings.
For the full year 2026, Lufthansa Group expects an Adjusted EBIT between €1.7 billion and €2.2 billion, reflecting high uncertainty, particularly from kerosene price volatility. In the first half of 2026, Adjusted EBIT was €-229 million, a €378 million decrease year-on-year, although the second quarter achieved a positive Adjusted EBIT of €383 million. The airline's revenue increased by 8% year-on-year to €19,887 million due to higher passenger traffic yields and strong growth in its Logistics and MRO segments, but operating expenses rose by 7% to €21,390 million, primarily driven by fuel costs. Approximately 86% of the current year's kerosene volume is covered by fuel hedging, yet the unhedged portion remains a concern. Additionally, the company faces challenges from persistent Boeing delivery delays, rising wage pressures, and increased environmental taxes at German airports.
