Due to fuel prices: Lufthansa’s net profit fell by 88%
5 August 21:17
German airline Lufthansa’s net profit in the second quarter fell by 88% compared to the same period last year, totaling 123 million euros, while operating profit fell by 56% to 383 million euros, according to the company’s financial report, as reported by "Komersant Ukrainian" citing DW.
The decline in quarterly profit was caused by ongoing pilot strikes and rising fuel prices due to the U.S. war in Iran. The company warned that full-year 2026 profit could also decline.
Despite an 8% increase in revenue to 11.1 billion euros, Lufthansa was unable to offset the sharp rise in expenses. The company estimated its fuel cost overrun at 750 million euros, while the pilot strikes cost the carrier approximately 150 million euros. The results were worse than analysts had predicted on average. Following the release of the financial report, Lufthansa’s stock fell by more than 10% during trading.
Ticket prices are likely to continue rising
According to the airline’s CFO, Till Streichert, the company was able to offset about 60% of the increased jet fuel costs by raising ticket prices. Fares are expected to continue rising. Lufthansa CEO Carsten Spohr emphasized that demand for air travel remains strong.
“People want to fly, and they can afford to do so even at higher prices,” the publication quotes him as saying.
Lufthansa’s subsidiaries, which handle maintenance and cargo transportation, once again made a positive contribution to the financial results. Meanwhile, European competitors—Air France-KLM and IAG (owner of British Airways)—reported smaller declines in profits.
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