Lufthansa expects significantly higher kerosene costs due to the Iran war

Frankfurt. Lufthansa boss Carsten Spohr expects even higher kerosene costs for Germany's largest airline because of the Iran war. One would probably be happy if the last-mentioned additional costs of 1.5 billion euros remained, Spohr told journalists in Frankfurt on Monday evening. “The number that we will probably have to report at the end of the year (…) will be higher.”

Spohr explained that Lufthansa expects an operating profit for 2026 to be at around the same level as the previous year with the cuts in the main Lufthansa brand and the recent significant increase in ticket prices.

High fuel prices are affecting airlines worldwide. In view of the simmering Iran war and the advance of the Houthi militia in Yemen at the Bab al-Mandab Strait, there had recently been new concerns about global oil supplies. The price of Brent oil rose again well above the $100 per barrel (159 liters) mark.

At the same time, Spohr was positively surprised by ticket sales at the end of the important summer season. Demand is surprisingly robust. This particularly applies to the premium classes, which include first and business class as well as premium economy. On long-haul routes, Lufthansa generates more than half of its revenue in the premium classes. According to the manager, ticket demand is “practically unaffected by geopolitical risks,” which would otherwise lead to reluctance among customers.

Spohr is preparing Lufthansa for another year of transformation with high oil prices in 2027. He expects more airlines to run into difficulties because of high fuel costs, after Estonia's Air Baltic and Spain's Volotea recently filed for bankruptcy protection.

Spohr had already prepared shareholders for a decline in profits in August: adjusted operating profit should reach 1.7 to 2.2 billion euros. This means that Lufthansa could fall short of the previous year's figure of 1.96 billion.

Spohr would love to reduce kerosene consumption by using more new and more economical aircraft. But the manufacturers Airbus and Boeing are not delivering as quickly as desired, and Lufthansa has to keep older and more fuel-thirsty jets, such as the Airbus A340, in operation longer than planned. In November, Spohr expects the first copy of the largest Airbus model currently on offer, the A350-1000. The first Boeing wide-body jet, the 777X, is scheduled to join the Lufthansa fleet in the first quarter of 2027, followed by other aircraft of the type - around seven years late.