Due to the Iran war, German airline major Lufthansa announced on Wednesday that its fuel bill for 2026 would be 1.7 billion euros ($2 billion) more than originally estimated, and it was getting ready for possible shortages.
The warning is the most recent indication of the conflict’s effects on international aviation, which have driven up jet fuel prices because the Strait of Hormuz, a vital energy corridor, is almost completely closed.
Lufthansa, like other airlines, has been rushing to counteract the effects of the conflict. In the past, it announced that 20,000 flights would be eliminated in the summer to reduce fuel expenses, and it also dissolved a small subsidiary early.
Europe’s biggest airline group, which also operates carriers including Eurowings and Swiss, said Wednesday it expects its fuel bill for 2026 to come in around 8.9 billion euros, nearly 20 percent higher than previously estimated.
This was “driven almost entirely by the price escalation since the start of the war in Iran, and this clearly makes fuel the single most relevant cost headwind for the remainder of the year,” said Lufthansa finance chief Till Streichert.
While the group’s fuel supplies were secured at its hubs until June, “we are currently also making plans for a scenario if this should change,” he added.
If gasoline is unavailable at the destination, steps may include adding refueling stops on some longer trips, he said.
However, the business emphasized that it was in a better position than some of its rivals because long-term contracts covered 80% of its fuel expenses for the year.
Lufthansa intends to use cost-cutting strategies in addition to higher ticket sales revenue to offset the rising fuel costs.
Reporting first quarter results, Lufthansa said its net loss narrowed substantially to 665 million euros from a year earlier and sales rose eight percent to 8.7 billion euros.
There was slight growth on long-haul routes, with a strong surge in March after the closure of Gulf hubs led passengers to look for alternatives, the group said.
Airlines’ earnings are typically weaker at the start of the year, when people fly less.
The group maintained its outlook for the year, forecasting core profit will be “significantly above” last year’s result of 1.96 billion euros.
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