Lufthansa CEO says jet fuel impact could top €1.5 billion forecast

• Jet fuel represents 30-40% of airline costs, with Lufthansa's total 2026 fuel expenses projected at €8.66 billion including the additional burden that will now exceed €1.5 billion
• Lufthansa has partially mitigated fuel price volatility through hedging, with 86% of 2026 fuel costs hedged and over 50% hedged for 2027
• The airline reports strong demand in premium economy and business cabins, consistent with trends seen at competitors Air France-KLM and IAG

Summary

Key Development:

Lufthansa CEO Carsten Spohr announced that the airline's additional jet fuel costs for 2026 will exceed the previously forecast €1.5 billion cited in August, driven by ongoing conflict in Iran and spiking oil prices. The exact revised figure was not disclosed.

Financial Impact:

• Total 2026 fuel costs now expected to reach €8.66 billion (including the €1.5 billion additional burden)
• Previous fuel cost forecast: €8.9 billion
• Jet fuel represents 30-40% of airline operating costs
• Despite higher fuel costs, Lufthansa maintains its operating profit guidance of €1.7-2.2 billion versus €2.0 billion in the previous year

Risk Management:

Lufthansa has implemented extensive fuel hedging to mitigate price volatility, with an 86% hedge ratio for 2026 and over 50% for 2027, according to CFO Till Streichert.

Strategic Outlook:

The airline's turnaround program targeting an 8-10% operating margin by 2028-2030 has been impacted by escalating industry-wide costs. Spohr acknowledged that financial performance has not met desired results due to fuel headwinds affecting the entire sector.

Industry Context:

Lufthansa joins other carriers including Ryanair, Air France-KLM, and IAG in warning about elevated fuel costs. However, the company reported strong demand for premium economy and business class bookings, mirroring trends across major European carriers.

Date: September 29, 2026 announcement in Frankfurt.

The news highlights ongoing pressure on airline profitability amid geopolitical tensions affecting energy markets.