Lufthansa cuts profit outlook on 28% fuel-bill increase

Lufthansa cut the top end of its 2026 adjusted operating profit forecast on Tuesday, Nov. 3, after third-quarter revenue reached €12.24 billion, according to a Euronews article.

The German airline group now expects full-year adjusted operating profit of €1.7 billion to €2 billion, down from a prior upper limit of €2.2 billion, as its fuel bill rises about 28% from 2025, according to Atlas360 calculations based on figures in the article.

Adjusted operating profit for the July-to-September quarter rose 6% from a year earlier to €1.4 billion. Revenue rose 9% to €12.24 billion, which Euronews described as Lufthansa’s highest quarterly revenue.

"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," Chief Executive Officer Carsten Spohr said in a company statement quoted by Euronews.

The article said third-quarter fuel costs rose €543 million from a year earlier after kerosene prices increased. Chief Financial Officer Till Streichert said Lufthansa’s full-year fuel bill is now expected to reach €9.3 billion, compared with €7.27 billion in 2025.

The roughly €2 billion increase in Lufthansa’s expected annual fuel bill is about the same size as the new upper end of its 2026 adjusted operating profit forecast. It is also almost seven times the main Lufthansa airline’s €300 million third-quarter adjusted operating profit, according to Atlas360 calculations.

Streichert attributed the fuel outlook to the geopolitical situation, according to Euronews. Atlas360 reported on Nov. 3 that Brent crude had risen as investors reassessed supply risks after recent military activity involving Iran and as Qatar sought to mediate between Washington and Tehran.

Lufthansa has hedged 86% of its passenger airlines’ 2026 fuel needs, Streichert said. Hedging uses financial contracts to lock in prices before delivery, limiting exposure to market moves. More than 60% of the group’s 2027 fuel requirements are also hedged, he said.

The results varied across the group. SWISS, Austrian Airlines and Brussels Airlines improved quarterly performance, while the main Lufthansa airline’s third-quarter adjusted operating profit fell by a third to €300 million.

Lufthansa Cargo helped offset the pressure, with adjusted operating profit more than tripling to €162 million. Lufthansa Technik increased adjusted operating profit 54% to €200 million in the quarter.

The strong summer quarter contrasted with the first nine months of 2026, when group revenue rose 8% but net profit fell 35%. Euronews reported that Lufthansa shares were up by more than 3% in early trading on Tuesday.

The group has already withdrawn CityLine’s 27 operational aircraft from its schedule, announced cuts affecting 20,000 short-haul flights through October and tightened spending on recruitment, internal events and external consultants. It also has a plan to cut 4,000 administrative jobs by 2030.

Streichert said the final 2026 result will depend on demand, fuel costs and Lufthansa Cargo’s performance in the fourth quarter.

Fuel and job milestones

In 2027, Lufthansa’s fuel hedging will show how much protection the group has from any further rise in kerosene prices, with more than 60% of passenger-airline fuel requirements already hedged, according to Streichert.

European airfares in 2027 are another pressure point. Ryanair Chief Executive Michael O’Leary told Euronews in October that fares could rise significantly as higher fuel costs, taxes and fewer available seats push up prices.

By 2030, Lufthansa plans to cut 4,000 administrative jobs, part of a wider cost programme that also includes limits on recruitment, internal events and external consultants.