Lufthansa’s shares tumble after airline cuts outlook on Mideast war
The aviation group expects core profit of between US$2 billion and US$2.5 billion for 2026, after previously forecasting 'significantly' higher earnings for the year.
Lufthansa's shares plummeted over 11% on the Frankfurt exchange after the airline revised its outlook due to the ongoing conflict in the Middle East. The German aviation giant now anticipates its core profit for 2026 will be between €1.7 billion and €2.2 billion (US$2 billion and US$2.5 billion), down from the €1.96 billion expected earlier.
Finance chief Till Streichert highlighted the uncertainty of passing on the increased fuel costs to customers, as booking patterns have been lower than anticipated. Despite a 10% sales increase to €11.1 billion in the second quarter, higher fuel prices raised costs by approximately €750 million. Lufthansa has managed to pass on about 60% of these costs to customers, but not entirely.
The airline is among several affected by soaring jet fuel prices as a result of the Middle East war, disrupting petrochemical supplies through the Strait of Hormuz. British Airways parent IAG, Air France-KLM, EasyJet, American Airlines, and RyanAir have all reported declining profits due to the ongoing conflict. Lufthansa's earnings were also impacted by strike action, costing the company €200 million in the three months leading up to June.
Numerous Lufthansa flights have been canceled this year due to repeated walkouts by cabin crew and pilots over pay and pension disputes.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
