Lufthansa Warns of Lower Profit Amid Fuel Price Volatility

Lufthansa has warned that its operating profit could decline in 2026 as volatile fuel prices continue to weigh on earnings. The German airline said higher fuel costs linked to geopolitical tensions, including the U.S.-Iran conflict, caused its second-quarter operating profit to more than halve, prompting a weaker full-year outlook.

The airline now expects adjusted EBIT between €1.7 billion and €2.2 billion, compared with its earlier forecast of exceeding last year’s €1.96 billion. Quarterly adjusted EBIT fell to €383 million from €870 million a year ago, while investors reacted negatively, sending Lufthansa’s shares down more than 10%.

To improve efficiency, Lufthansa plans to retire older, fuel-intensive aircraft and temporarily ground some planes to reduce fuel consumption. Despite the short-term challenges, the airline maintained its long-term profitability targets and said it expects fuel supplies to remain stable while continuing to monitor market uncertainty.

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