Lufthansa Posts Record Revenue While Fuel Crisis Clouds 2026 Outlook

Lufthansa Group has reported the highest revenue in its history, but the German airline giant has warned that rising jet fuel costs linked to the Iran conflict will significantly impact profitability in 2026.

The airline group announced that revenue increased 5% in 2025 to reach €39.6 billion, while operating profit climbed 20% compared with the previous year. The company also delivered improved first-quarter results for 2026, with revenue rising 8% year-on-year despite mounting geopolitical and operational challenges.

However, Lufthansa now expects an additional €1.7 billion in fuel-related expenses this year as global oil prices remain volatile due to tensions in the Middle East.

The conflict involving Iran has forced airlines to avoid certain airspaces, resulting in longer flight routes, increased fuel consumption, and higher operational costs. Airlines are also facing additional expenses linked to extended crew hours and faster maintenance cycles caused by longer flying times.

To manage rising costs, Lufthansa has announced significant route adjustments and flight reductions. The airline has already cancelled around 20,000 short-haul flights scheduled through October as part of broader efforts to reduce fuel consumption and improve operational efficiency.

The wider aviation industry is also under pressure. Global airlines reportedly cancelled nearly 13,000 flights during May as carriers struggled to cope with soaring fuel prices and operational disruptions.

Despite these challenges, Lufthansa remains profitable and continues to see strong demand for international travel. The company said passenger bookings remain resilient, with expectations for a strong summer travel season across Europe and long-haul destinations.

Till Streichert said the airline had delivered stronger first-quarter financial results compared to last year, but acknowledged that the current global situation requires strict cost management and efficiency measures.

He noted that annual profit for 2026 will likely fall below earlier expectations as the airline navigates rising operational risks and fuel market instability.

Meanwhile, Carsten Spohr emphasized that the company remains resilient despite growing pressure on the aviation sector. He pointed to Lufthansa’s fuel hedging strategy and diversified multi-airline network as key advantages helping the group absorb market shocks more effectively than many competitors.

Alongside passenger operations, Lufthansa’s cargo and maintenance divisions also contributed positively to earnings. Lufthansa Technik recorded rising demand for maintenance and repair services, while Lufthansa Cargo benefited from expanding logistics activity and cooperation with ITA Airways.

The airline is continuing to invest heavily in fleet modernization, aiming to improve fuel efficiency and reduce long-term exposure to energy price volatility. However, executives acknowledged that ongoing instability in global oil markets remains the biggest uncertainty facing the company’s financial outlook for the remainder of 2026.