Lufthansa expects its Lufthansa Fuel Costs to rise by €2 billion in 2026 compared with last year. The German airline group attributes the increase to elevated global energy prices linked to the continuing Iran war.
The company now forecasts an annual fuel bill of approximately €9.3 billion. This estimate exceeds its previous projection by €600 million, reflecting the prolonged pressure on energy markets.
Alongside the higher cost outlook, Lufthansa has slightly reduced its full-year core profit forecast. The group now expects earnings between €1.7 billion and €2 billion. Previously, its guidance reached a maximum of €2.2 billion.
Despite these challenges, Lufthansa reported stronger financial results for the third quarter. Net profit climbed 30 percent during the July-to-September period, reaching €1.26 billion. The company also exceeded market expectations, supported by demand for premium travel.
Revenue increased nine percent year-on-year to €12.2 billion. In particular, passengers showed strong interest in premium tickets on routes to Asia and North America. This demand helped support the airline’s quarterly performance despite rising operating expenses.
However, higher fuel prices continued to weigh heavily on the results. Lufthansa said fuel expenses during the quarter exceeded the previous year’s figure by more than €500 million. Consequently, the company faced a substantial additional cost burden even as passenger demand remained robust.
Chief Financial Officer Till Streichert said the group improved its performance compared with the same period last year. He acknowledged that fuel expenses had reduced the quarterly result by more than half a billion euros. Nevertheless, he said strong passenger demand helped offset some of that pressure.
Lufthansa operates several airlines within its wider group, including Swiss, Brussels Airlines and Eurowings. Therefore, changes in fuel prices affect a broader aviation network beyond its main German operations.
The revised outlook reflects the difficulty airlines face when energy costs remain elevated. Fuel represents a significant operating expense, meaning sustained price increases can put pressure on profitability. Moreover, airlines must balance these expenses against ticket demand and competitive pricing.
Premium travel has provided important support for Lufthansa during the reporting period. Strong demand from passengers travelling to major destinations in Asia and North America helped lift revenue. However, the company’s lower profit ceiling indicates continued caution about the months ahead.
Lufthansa Fuel Costs will remain an important factor in the group’s financial performance throughout 2026. The company’s latest forecast reflects higher expected expenses and a slightly narrower earnings outlook.
The third-quarter results nevertheless show that passenger demand continues to support the business. Future performance will depend partly on energy prices, travel demand and the airline group’s ability to manage operating costs.
