Lufthansa Group paid roughly $863 million (€750 million) more for fuel in the second quarter of 2026 than it did a year earlier, a jump the company identified as the "primary driver" of a sharp decline in earnings even as passenger demand stayed strong.
Reporting its results on August 4, 2026, the group said net profit fell 88% in the quarter, sliding from around $1.16 billion (€1.01 billion) in the second quarter of 2025 to just $141 million (€123 million). Alongside the higher kerosene bill, Lufthansa attributed the drop to a weaker operating result, valuation effects and one-off tax benefits that had flattered the prior-year period.
Revenue, by contrast, moved in the right direction. Total revenue climbed 8% to about $12.7 billion (€11.1 billion), up from $11.8 billion (€10.3 billion) a year earlier, lifted by what chief executive Carsten Spohr described as "continued strong global demand for air travel — primarily in the premium classes."
"Today, we reflect on a challenging second quarter that was once again marked by multiple geopolitical crises and uncertainties," Spohr told shareholders. "Despite our further improvement in load factor and a significant increase in yield, we were unable to fully offset the considerable rise in fuel costs." He added that investments in premium products such as Allegris, Swiss Senses and the FOX service upgrade were "beginning to pay off."
The fuel shock is accelerating a broader cost-cutting drive. Spohr said several measures to streamline operations were being brought forward, including removing Lufthansa CityLine's flight operations from the group's offering and decommissioning its entire 23-aircraft Canadair CRJ-900 sub-fleet. The group also plans the early retirement of fuel-hungry long-haul types such as the Airbus A340-600 and the temporary grounding of two Boeing 747-400s from the start of the winter schedule.
Yields helped cushion the blow, running more than 13% above the prior-year level on Asian routes. The network airlines offered 3% less capacity than a year earlier, a reduction the group linked primarily to six strike days in April 2026.
Looking ahead, Lufthansa now expects full-year Adjusted EBIT of between roughly $1.96 billion and $2.53 billion (€1.7 billion to €2.2 billion). The company said the upper end of that range "continues to represent a result significantly above the prior year," while the spread reflects heightened uncertainty from volatile kerosene prices and shorter booking cycles.
Chief financial officer Till Streichert struck a similar note of caution. "Even though uncertainties for the second half of the year remain high, we are confident that the consistent execution of our strategy, cost discipline, network optimizations and persistently high demand will offset a significant portion of the cost increases," he said, while acknowledging that fuel-price swings and compressed booking windows are making forecasting increasingly difficult.
Sources: AeroTime, Aviation24. Featured image: AI-generated by AviationShop. By Elena Vargas.
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