Lufthansa latest airline to flag ticket price hikes
Lufthansa on Tuesday became the latest airline to warn that ticket prices will rise further, as it forecast a 2bn-euro ($2.2bn) jump in annual fuel costs due to the Middle East conflict.It came a day ...
Lufthansa, Europe's largest airline group by sales, has announced that it expects ticket prices to rise further due to a significant increase in fuel costs. The German airline firm forecast a 2 billion euro ($2.2 billion) jump in annual fuel expenses, driven by the ongoing conflict in the Middle East. This conflict has resulted in the closure of the Strait of Hormuz, a crucial oil and gas trade route, leading to higher airline fuel costs and fares.
Lufthansa's finance chief, Till Streichert, revealed that the outlook for fuel costs has worsened compared to a few months ago, with the company predicting a bill of 9.3 billion euros for 2026, which is 2 billion euros more than the previous year. He stated that ticket prices will increase by double digits next year to pass on the increase in kerosene costs. Streichert also warned that fuel costs would continue to rise in 2027, but expressed hope that the geopolitical situation would improve and ease the financial burden.
The airline, which operates carriers including Swiss, Austrian Airlines, Brussels Airlines, and Eurowings, has already adjusted its earnings forecast for the year, expecting core profit in a range of between 1.7 and 2.0 billion euros for 2026, down from the previous range of between 1.7 and 2.2 billion euros. Despite the slightly bleaker outlook, Lufthansa reported a 30% jump in profits for the July-September period, beating forecasts.
Net profit for the quarter was 1.26 billion euros, driven by strong demand for premium tickets to Asia and North America.
The group's cargo division also experienced a significant boost, tripling its core profit due to the rapid construction of data centers to support the artificial intelligence (AI) revolution. German companies, particularly those manufacturing industrial lasers for data centers, are enjoying strong demand. However, Lufthansa's flagship airline saw a decline in operating profit, partly attributed to cabin crew and pilot strikes.
CEO Carsten Spohr acknowledged that the airline had hedged over 80% of its fuel costs for 2026 and over 60% for 2027, reducing its exposure to market volatility.
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