Finance
Lufthansa Braces for Jet Fuel Crunch, Higher Costs May Force Fleet Cuts
Published by Global Banking & Finance Review®
Posted on April 14, 2026
2 min readLast updated: April 14, 2026
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Lufthansa warns that Iran‑war disruptions will keep jet fuel (kerosene) scarce and expensive through 2026, prompting contingency plans to cut capacity by grounding 20–40 less efficient aircraft, though strong revenues on Asian routes are helping mitigate the cost surge.
Lufthansa Prepares for Ongoing Jet Fuel Crunch and Potential Fleet Reductions
Impact of Jet Fuel Shortages on Lufthansa Operations
Jet Fuel Supply Constraints Due to Iran War
April 14 (Reuters) - Lufthansa Chief Executive Carsten Spohr said that jet fuel supplies are expected to remain constraint through the year due to the Iran war, potentially leading to higher costs.
Rising Kerosene Costs and Revenue Offsets
"Kerosene will remain in short supply and therefore more expensive for the rest of the year," Spohr told German newspaper Frankfurter Allgemeine Zeitung in an interview published on Tuesday. He also said that record revenues on Asian routes were helping offset the impact of rising kerosene costs.
Potential Fleet Reductions and Contingency Planning
Possibility of Grounding Aircraft
Spohr said the group had yet to ground any aircraft due to the fuel shortages but warned that it "may be unavoidable" in the future as kerosene availability is already critical at some airports, particularly in Asia.
Capacity Cuts and Early Retirement of Older Planes
Lufthansa has prepared contingency plans, including cutting its capacity by 2.5% or 5%, involving the grounding of 20-40 older, less fuel-efficient planes earmarked for early retirement, Spohr added.
(Writing by Linda Pasquini, editing by Kirsti Knolle)
Key Takeaways
- •CEO Carsten Spohr cautions that kerosene “will remain in short supply and therefore more expensive” through the year due to the Iran war (sahmcapital.com).
- •Lufthansa has hedged over 80% of its 2026 fuel needs but rising jet‑crack spreads may push costs up by 20–25% versus prior estimates (sahmcapital.com).
- •Record revenues on Asian routes and cargo growth are helping offset fuel cost pressures, while contingency planning includes grounding 20–40 older planes to cut capacity by 2.5–5% if shortages worsen (defenseworld.net).
References
Frequently Asked Questions about Lufthansa braces for jet fuel crunch, higher costs may force fleet cuts
1Why is Lufthansa expecting higher jet fuel costs?
Lufthansa cites ongoing shortages in jet fuel supply due to the Iran war, leading to rising kerosene prices.
2How is Lufthansa planning to respond to the jet fuel crunch?
Lufthansa has contingency plans to reduce capacity by grounding 20-40 older, less fuel-efficient planes if shortages persist.
3Are Lufthansa's revenues affected by rising kerosene costs?
Record revenues from Asian routes are helping Lufthansa offset the impact of higher kerosene costs.
4Is Lufthansa currently grounding any aircraft due to fuel shortages?
As of now, Lufthansa has not grounded any aircraft due to fuel shortages, but may do so if the situation worsens.
5Which airports are facing the most critical jet fuel shortages?
Lufthansa reports that kerosene availability is already critical at some airports, particularly in Asia.
