German flagship carrier Lufthansa has trimmed its profit outlook on Tuesday as the estimated jet fuel bill for 2026 rose to 9.3 billion euro (USD 10.4 billion).
However, the carrier’s third-quarter results fall in line with analysts’ forecasts, sending the company’s shares higher.
Lufthansa trimming its profit outlook follows the pattern of its European peers, who have warned that the rising cost of jet fuel resulting from the Iran war will weigh on their prospects, with ticket prices set to rise in 2027 as hedges expire.
“With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros,” CEO Carsten Spohr said in a statement.
The German airline group’s total airline fuel costs rose by more than 400 million euro (USD 448 million) compared with last year.
During the media call, Spohr also said that the carrier was still planning to hedge its fuel costs in 2027, adding that it was 75% hedged in the first half of the year.
Lufthansa trimmed its operating profit forecast for the 2026 financial year to between 1.7 billion euro and two billion euro, compared with an earlier range of 1.7 billion euro to 2.2 billion euro.
The carrier also confirmed capacity growth for the year was expected to be flat, as it posted a 1.4 billion euro operating profit for its Q3, compared with a company-compiled analyst projection of 1.37 billion euro.
Chief Financial Officer Till Streichert said full-year operating profit would depend on demand, fuel costs, and the performance of Lufthansa Cargo in the fourth quarter.
The group witnessed considerable demand in its premium segment, reflecting a trend that major network carriers have flagged.
Lufthansa’s traffic to Asia and North America also remained strong, while passengers were continuing to book closer to their travel date with higher fares, helping to drive resilience.