Lufthansa Group profit hit by €750 million fuel cost surge despite strong travel demand

The Lufthansa Group remained profitable in the second quarter of 2026 despite a sharp increase in fuel prices, reporting an Adjusted EBIT of €383 million as robust passenger demand and strong performances from Lufthansa Cargo and Lufthansa Technik helped offset significantly higher operating costs.

Group revenue increased 8% year-on-year to €11.1 billion, driven by continued strong demand for air travel, particularly in premium cabins and on Asian routes. However, operating profit fell sharply from €870 million in the same period last year after the airline group absorbed around €750 million in additional fuel costs and at least €150 million in strike-related expenses.

Net profit declined to €123 million, compared with €1.0 billion a year earlier, while the Adjusted EBIT margin fell from 8.4% to 3.4%.

Lufthansa Group CEO Carsten Spohr described the quarter as challenging, citing geopolitical tensions and volatile fuel prices, but said demand for premium travel remained strong.

“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 said, adding that investments in premium products such as Allegris, SWISS Senses and Lufthansa’s FOX service upgrade are beginning to deliver results.

Cargo and Technik continue to outperform

Among the Group’s business units, Lufthansa Cargo delivered one of the strongest performances. High global demand for air freight, combined with a 27% increase in yields, lifted Adjusted EBIT to €116 million, up from €73 million a year earlier. Capacity grew by 2%, supported in part by the addition of ITA Airways’ belly cargo capacity.

Lufthansa Technik also posted solid results, with revenue increasing 11% to €2.2 billion. External customer business rose 23%, while Adjusted EBIT reached €157 million, slightly above last year’s €149 million.

Passenger airlines face fuel and strike pressures

Lufthansa’s network airlines reduced capacity by 3%, mainly because of strike disruption in April and ongoing optimisation of short-haul operations, including the withdrawal of Lufthansa CityLine flying. Nevertheless, the carriers achieved a higher load factor of 81.6% and a 6.4% increase in unit revenues, reflecting strong demand, particularly in premium cabins and on Asian services.

The network airlines generated €137 million in Adjusted EBIT, down €490 million from the previous year, largely due to higher fuel costs and lower equity earnings, including currency-related valuation effects linked to ITA Airways.

Low-cost subsidiary Eurowings also faced pressure. Although strong demand on European routes boosted unit revenues by 9.4%, the airline reported an Adjusted EBIT loss of €37 million, compared with a profit in the previous year. Fuel costs increased by €71 million, while flights to the Gulf region remained suspended because of the Middle East conflict, with capacity redeployed to Mediterranean destinations.

Full-year guidance revised to reflect uncertainty

Despite the difficult quarter, Lufthansa maintained a strong balance sheet, ending June with €10.7 billion in available liquidity and net financial debt and pension obligations of €8.3 billion, broadly unchanged from the end of 2025.

Reflecting continued volatility in fuel prices and shorter booking windows, the Group now expects full-year Adjusted EBIT of between €1.7 billion and €2.2 billion. While the forecast introduces a wider range because of uncertainty, the upper end remains consistent with Lufthansa’s previous ambition of delivering a result significantly above 2025.

Chief Financial Officer Till Streichert said the Group’s strategy, cost discipline and network optimisation should help absorb much of the additional cost pressure, although forecasting has become increasingly challenging due to volatile kerosene prices and changing passenger booking behaviour.