Lufthansa profit outlook trimmed as fuel costs rise €400m

Others airlines across Europe are feeling the same squeeze

The flag carrier of Germany has lowered its profit guidance for 2026, as it now expects an operating profit of between €1.7 billion and €2 billion.

That is down from the €1.7 billion to €2.2 billion range it gave earlier this year.

The cause of the downgrade are the higher jet fuel costs, as the group's airlines spent over €400 million more on fuel than a year earlier.

In the third quarter, Lufthansa still beat the market, posting an operating profit of €1.4 billion against the €1.37 billion analysts' average estimate.

Lufthansa profit outlook: what's driving the fuel cost rise

Lufthansa isn't the only airline, as others across Europe are feeling the same squeeze.

Climbing fuel bills will weigh on results, carriers have cautioned.

Meanwhile, next year fares could rise again, once the hedging contracts that have cushioned prices run out.

That would add to a squeeze already on display in a recent poll, where 7 in 10 young adults said they were considering leaving Ireland for a better quality of life.

According to Lufthansa chief executive, Carsten Spohr, the result is credited to cost discipline.

Spohr said: "With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros."

According to finance chief Till Streichert there are risks ahead, adding that final numbers still hinge on demand, fuel prices and the cargo unit's performance.

What the Lufthansa results mean for European air fares

The airline confirmed that capacity growth will stay flat for the year.

Business and first-class demand held up well, a trend Lufthansa said other big network carriers are also seeing.

In the meantime, routes to Asia and North America kept performing strongly.

The fuel warning lands as rivals brace for the same pressure. According to RTÉ, several hedging contracts across the sector are due to run out around the same time.

What is Lufthansa's profit outlook for 2026?

Lufthansa now expects an operating profit of between €1.7 billion and €2 billion for 2026.

That is down from its earlier guidance of €1.7 billion to €2.2 billion.

Why did Lufthansa cut its profit forecast?

Jet fuel costs rose by more than €400 million at the group's airlines this year.

Next year, rising fares are unlikely to fully offset the increase.