LONDON ─ Lufthansa trimmed its profit outlook on Tuesday as the German airline’s estimated jet fuel bill for 2026 rose to 9.3 billion euros, although its third-quarter results were in line with forecasts.
European carriers have warned that the rising cost of jet fuel resulting from the Iran war will weigh on their outlooks, with ticket prices set to rise next year as hedges expire.
Bernstein analyst Alex Irving said the more resilient results show Lufthansa’s turnaround program may be starting to bear fruit despite the challenging fuel environment.
Lufthansa shares were up 1.5 percent soon after markets opened.
“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,” Lufthansa CEO Carsten Spohr said in a statement.
The German airline group said its total fuel costs rose by more than 400 million euros ($448 million) compared to last year.
Lufthansa trimmed its operating profit forecast for the 2026 financial year to between 1.7 euros billion and 2 billion euros, compared to an earlier 1.7-billion euros to 2.2-billion euros range.
It also confirmed capacity growth for the year was expected to be flat as it posted a 1.4 billion euros operating profit for its third quarter, which is usually the most profitable for European airlines because it includes the peak summer season.
That compared to a company-compiled analyst projection of 1.37 billion euros.
Chief Financial Officer Till Streichert said the full-year operating profit would depend on demand, fuel costs and the performance of Lufthansa Cargo in the fourth quarter.
The airline group said it saw considerable demand in its premium segment, reflecting a trend that major network carriers have flagged. It added that traffic to Asia and North America was also strong, helping to drive resilience.
