Lufthansa expects its additional jet fuel costs this year to exceed the €1.5 billion burden it previously forecast, as the Iran war contributes to higher oil prices, Chief Executive Carsten Spohr said.
Speaking to journalists at an event in Frankfurt on Monday, Spohr said the final additional fuel expense expected to be reported at the end of the year would be higher than the €1.5 billion estimate announced in August. He did not provide a revised figure.
The warning makes Lufthansa the latest major airline to highlight the impact of elevated jet fuel prices. Fuel typically accounts for around 30% to 40% of airline operating costs, with carriers including Ryanair also reporting pressure from higher expenses.
Lufthansa said in August that it expected total fuel costs of €8.66 billion for 2026, including the additional €1.5 billion burden. That estimate was below its earlier forecast of €8.9 billion, although the airline warned that higher costs could weigh on profits.
The German airline has reduced some exposure to fuel-price fluctuations through extensive hedging. Lufthansa Chief Financial Officer Till Streichert said in August that the group had hedged 86% of its expected 2026 fuel requirements and slightly more than 50% for 2027.
Despite the expected increase in fuel expenses, Spohr maintained Lufthansa's forecast for an operating profit of between €1.7 billion and €2.2 billion, compared with €2.0 billion in the previous year.
He said the group's wider turnaround plan had also faced pressure from rising industry costs. The programme targets an operating margin of 8% to 10% between 2028 and 2030.
Spohr said Lufthansa's financial performance had not yet reached its targeted level this year amid the fuel-related challenges affecting airlines across the sector.
At the same time, he pointed to strong demand for the group's premium economy and business-class cabins. The trend is consistent with increased premium-cabin bookings recently reported by competitors Air France-KLM and British Airways parent IAG.
Source: Reuters