Germany’s Lufthansa Group broadened its full-year guidance on Tuesday in response to continuing jet fuel price volatility.
The airline conglomerate now expects to close 2026 with adjusted pre-tax earnings between €1.7 billion and €2.2 billion, or about $2 billion to $2.5 billion. Lufthansa Group previously predicted profits “significantly above” its 2025 result of €1.96 billion.
“The upper end of the range continues to represent a result significantly above the prior year and thus remains in line with the previous earnings ambition,” the company said in a statement. “The range reflects the heightened uncertainty stemming from high kerosene price volatility and shortened booking cycles in the passenger business.”
Lufthansa Group has spent much of the year so far working to stay ahead of rising fuel prices. In May, its airlines cut 20,000 flights through October and temporarily suspended service to three European destinations. The group also reworked and consolidated elements of its European network across its subsidiary carriers to improve efficiency.
Lufthansa Group CEO and Chairman Carsten Spohr said the company was unable to fully offset the rise in fuel costs in the second quarter. But global demand for air travel remains strong, he added, and the company’s investments in premium products such as Allegris and Swiss Senses are beginning to pay off. Spohr also called attention to positive second-quarter results at the core Lufthansa brand, Lufthansa Cargo, and Lufthansa Technik, the group’s maintenance, repair, and overhaul division.
Jet fuel prices effectively doubled in February and March after Iran shut down the Strait of Hormuz in response to attacks from the U.S. and Israel. Since then, prices have tracked with the course of the conflict, falling when the U.S. and Iran agreed to a ceasefire and climbing again when the deal broke down and fighting resumed. Prices for early August are up compared to June and early July but could plateau or trend down now that the U.S. has suspended air strikes on Iran.
U.S. Treasury Secretary Scott Bessent said Tuesday that talks with Iran are currently underway, and a deal permanently reopening Hormuz could be announced as early as Tuesday or Wednesday.
