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Lufthansa trims outlook on fuel costs after third-quarter profit meet expectations - Finance news and analysis from Global Banking & Finance Review
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Lufthansa trims outlook on fuel costs after third-quarter profit meet expectations

Published by Global Banking & Finance Review

Posted on November 3, 2026

2 min read

· Last updated: November 3, 2026

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Lufthansa Lowers Profit Outlook as Jet Fuel Costs Weigh on Third-Quarter Results

Third-Quarter Financial Performance and Outlook

By Joanna Plucinska and Ilona Wissenbach

Impact of Rising Jet Fuel Costs

LONDON, Nov 3 (Reuters) - German airline group Lufthansa on Tuesday trimmed its profit outlook due to higher jet fuel costs as it reported third-quarter results broadly in line with expectations.

European carriers have warned the spiralling cost of jet fuel will weigh on their outlooks, with ticket prices set to rise next year as hedges expire. 

Lufthansa's Increased Fuel Expenses

Lufthansa said its fuel costs rose by more than €400 million ($447.60 million) at the group's airlines compared to last year. 

Revised Profit Forecast and Capacity Growth

The company trimmed its operating profit forecast for the 2026 financial year to between €1.7 billion and €2 billion, compared to an earlier range of €1.7 billion to €2.2 billion. It also confirmed that capacity growth for the year was expected to be flat. 

Third-Quarter Operating Profit Results

It reported an operating profit of €1.4 billion 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.     

CEO and CFO Statements

"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. 

Chief Financial Officer Till Streichert said the full-year operating profit will depend on demand, fuel costs and the performance of Lufthansa Cargo in the fourth quarter.

Premium Segment Demand and Market Trends

Still, the company 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. 

($1 = 0.8937 euros)

(Reporting by Joanna Plucinska; Editing by Linda Pasquini and Jamie Freed)

Key Takeaways

  • Lufthansa’s Q3 operating profit matched analyst projections (~€1.37 billion), reflecting resilience in peak summer demand. citeturn133327news0
  • A sharp rise in jet fuel costs—exceeding €400 million compared to last year—prompted the cut in full‑year operating profit guidance to €1.7‑2.0 billion. citeturn133327news0
  • With hedges expiring and fuel prices elevated, European carriers including Lufthansa face mounting pressure to raise fares; Ryanair predicts European airfares may climb up to 20 %. (apnews.com)

References

Frequently Asked Questions

Why did Lufthansa trim its profit outlook?
Lufthansa trimmed its profit outlook due to higher jet fuel costs, which increased by more than €400 million compared to last year.
How did Lufthansa perform in the third quarter?
Lufthansa reported a third-quarter operating profit of €1.4 billion, in line with analyst expectations and typically the strongest quarter for European airlines.
How are rising fuel costs impacting ticket prices?
Rising jet fuel costs are expected to lead to increased ticket prices next year, as hedging contracts expire.
Which segments and routes showed strong demand for Lufthansa?
Lufthansa saw strong demand in its premium segment and high traffic to Asia and North America, supporting overall resilience.

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