- Lufthansa’s additional jet fuel bill this year will exceed the €1.5bn it flagged in August
- The German group is the latest in a series of airlines to warn about the effects of high jet fuel costs
- Lufthansa expects total 2026 fuel costs of €8.66bn
- The group’s fuel hedge ratio for 2026 was 86pc
- Spohr reaffirmed the forecast for an operating profit of €1.7bn to €2.2bn
Lufthansa’s additional jet fuel bill this year will exceed the €1.5bn it flagged in August as the Iran war drags on and oil prices spike, CEO Carsten Spohr has stated. The German group is the latest in a series of airlines, including Ryanair, to warn about the effects of the ongoing high cost of jet fuel on the sector, which makes up 30 to 40pc of airlines’ costs. The €1.5bn mentioned a few months ago as the additional burden for fuel will be higher, Spohr told journalists at a press event in Frankfurt.
In August, the carrier stated it expects total 2026 fuel costs of €8.66bn, which include the additional €1.5bn burden, compared with an earlier forecast of €8.9bn. It also warned profits could be impacted. Lufthansa has somewhat shielded itself from price volatility in jet fuel with extensive jet fuel hedging. Its chief financial officer Till Streichert told analysts in August the group’s fuel hedge ratio for 2026 was 86pc and a bit more than 50pc in 2027.
Despite the higher expected fuel cost, Spohr reaffirmed the forecast for an operating profit of €1.7bn to €2.2bn, compared with €2bn in the previous year. However, the airline’s turnaround programme, which aims for an operating margin of between 8pc and 10pc by 2028 to 2030, has been impacted by the spiralling costs faced by the sector. Spohr stated there was a boom in bookings for the premium economy and business cabins on offer, echoing a similar trend highlighted by competitors Air France-KLM and Aer Lingus and British Airways owner IAG.
Carsten Spohr shared “The €1.5bn I mentioned a few months ago as the additional burden for fuel, the figure we’ll probably have to report at the end of the year will be higher.” He also stated “Our financial performance hasn’t yet brought us to our desired results this year, given the headwinds in fuel consumption that everyone else has had to contend with.”
