Published On 5/6/2026
Lufthansa warned of increasing risks threatening its financial performance this year, in light of the repercussions of the war on Iran and rising fuel prices, despite its adherence to expectations of achieving strong profit growth during the year 2026.
The German company said on Wednesday that “the balance of risks versus opportunities has tilted towards risks,” noting that the continued tensions in the Middle East threaten the stability of aviation fuel supplies and impose additional pressure on the global aviation sector.
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Since the outbreak of war following the US-Israeli attack on Iran, Tehran has controlled the Strait of Hormuz, through which about 20% of global oil production and large quantities of liquefied natural gas pass, raising widespread concerns about energy security and air traffic.
Lufthansa added that “no restrictions on kerosene supplies are currently expected” at its operational hubs, but warned that a decline in fuel availability later in the year remains an “additional risk factor.”
Although the company enjoyed relative protection after stabilizing the prices of about 80% of its fuel needs for the year 2026, it expected kerosene costs to rise by an additional 1.7 billion euros (about 1.8 billion dollars), reaching 8.9 billion euros (about 9.6 billion dollars) compared to previous estimates.
The company confirmed that it seeks to compensate for this increase by raising ticket revenues, improving flight occupancy rates, in addition to implementing additional measures to reduce costs, while reducing flight expansion plans to 2% instead of 4%.
The group also noted that changes in passenger traffic, with some passengers shifting from Gulf transit hubs to Lufthansa destinations in Africa and Asia, may partly help alleviate financial pressures.
Net losses decline
The German group includes several airlines, including Swiss Airlines and Brussels Airlines, which were forced this year to cancel thousands of flights due to strikes to protest the reduction in wages and pensions.
The unions of pilots and flight crews warned of the possibility of implementing new strikes after the company’s decision to close its “City Line” unit before the scheduled date, at a time when the company is facing increasing pressure due to fuel costs and labor unrest.
In terms of financial results, Lufthansa announced that its net losses in the first quarter decreased by 25% on an annual basis to 665 million euros (about 718 million dollars), while revenues increased 8% to 8.75 billion euros (about 9.5 billion dollars).
Adjusted operating losses also decreased by 15% to 612 million euros (about 661 million dollars), in results that were better than analysts’ expectations despite the impact of strikes and high operating costs.
The company expects that adjusted operating profit in 2026 will exceed the level of 1.96 billion euros (about 2.1 billion dollars) recorded last year, an increase of more than 10%, despite the continued uncertainty related to the war and energy prices.
