Lufthansa Sticks to 2026 Outlook Despite $2 Billion Jet-Fuel Hit
By Reuters | 06 May, 2026

Lufthansa says hedging, higher fares and cost cuts would help offset a 1.7 billion euro ($2 billion) hit from rising jet-fuel costs.

Lufthansa kept its 2026 profit outlook on Wednesday, saying hedging, higher fares and cost cuts would help offset a 1.7 billion euro ($2 billion) jet-fuel hit to costs, sending shares up 6% even as labour strikes cloud the year ahead.

The group would mitigate the impact of higher jet fuel in the next quarters "through increased revenue from ticket sales, optimised network planning, and further cost-saving measures," Lufthansa said in a statement.

The airline said the crisis in the Middle East, which had send jet-fuel prices surging due to a drop in supply, was boosting demand as travellers rerouted via its hubs.

"We expect fuel supplies at our hubs to be secure up to and including June," Chief Financial Officer Till Streichert told journalists.

Nevertheless, the airline group is preparing for potential disruptions. For instance, stopovers for refuelling could be made on long-haul flights to Asia and Africa.

European airlines are expected to be shielded from the initial fallout of the jet fuel shock in the first quarter, though some, such as Air France-KLM, have adjusted their outlooks for 2026 with jet fuel prices set to remain high.

Lufthansa reported an adjusted operating loss of 612 million euros ($717 million) in the January-March period compared with a loss of 659 million projected by a company-compiled analyst poll. That is an improvement from an adjusted operating loss of 722 million euros a year ago.

2026 FORECAST TO STAY, IF NO FURTHER STRIKES OCCUR

It maintained its forecast for 2026 of a significantly higher adjusted operating profit than the 1.96 billion euros it earned in 2025.

Streichert said the outlook would be maintained "provided there are no fuel supply bottlenecks or further strikes."

Lufthansa cabin crew and pilot unions called for strikes throughout April, which cost the airline 150 million euros. Lufthansa issued two profit warnings in 2024 due to costs linked to labour disruptions.

Lufthansa is pursuing an ambitious turnaround program across its airlines, aiming to boost its profit margin to 8% to 10% between 2028 and 2030. The airline has already cut 20,000 flights this summer to limit capacity amid jet fuel shortage worries.

($1 = 0.8522 euros)

(Reporting by Joanna Plucinska and Ilona Wissenbach; Writing by Linda Pasquini; Editing by Muralikumar Anantharaman, Elaine Hardcastle and Bernadette Baum)