SWISS first-half profit falls as fuel costs surge despite strong premium demand

Swiss International Air Lines (SWISS) reported a slight decline in first-half earnings as sharply higher fuel prices offset continued strong demand for air travel, particularly in premium cabins.

The Lufthansa Group carrier posted an Adjusted EBIT of CHF 189.3 million for the first six months of 2026, down 3.0% from CHF 195.1 million a year earlier. Total revenue increased 3.2% to CHF 2.77 billion, reflecting resilient passenger demand and improved yields.

According to Chief Financial Officer Dennis Weber, the airline’s biggest challenge was the sharp rise in fuel prices following the outbreak of the Iran war.

“Between April and June, fuel costs increased by around 50 percent,” Weber said. “Fuel is our single largest cost item. Although our savings and efficiency measures are already having an impact, they were not enough to fully offset the higher jet fuel prices.”

SWISS also continued to face elevated aircraft maintenance costs, particularly those linked to the well-publicised engine issues affecting parts of its short-haul fleet.

Premium demand remains resilient

Despite the challenging cost environment, demand remained robust throughout the first half of the year. SWISS carried approximately 8.5 million passengers, an increase of 0.6%, while operating more than 67,400 flights, 4.1% fewer than during the same period in 2025.

The airline reduced capacity by 0.8%, but passenger traffic increased by 1.9%, resulting in a 2.2 percentage-point improvement in load factor.

Weber said premium long-haul travel continued to perform particularly well, with higher yields and strong cabin occupancy supporting earnings.

SWISS also benefited temporarily from capacity reductions by several Middle Eastern airlines during the early stages of the regional conflict. The resulting shift in passenger demand boosted bookings, especially on routes between Europe and Asia, although this benefit gradually diminished as Gulf carriers restored their operations.

Operational performance remains stable

Despite geopolitical tensions and periods of severe weather, SWISS maintained operational performance at broadly the same level as last year.

The airline recorded an on-time performance of 72.4%, unchanged from the first half of 2025, while schedule stability reached 96.7%, only slightly below last year’s 97.3%.

The carrier also reported progress in reducing controllable costs and addressing resource shortages. Improved pilot training and increased cooperation with wet-lease partners mean SWISS now expects to maintain overall production in 2026 at roughly the same level as last year, having previously anticipated a reduction.

Focus remains on efficiency and growth

Chief Executive Officer Jens Fehlinger described 2026 as a transition year during which SWISS is laying the foundations for renewed growth.

While acknowledging continued uncertainty caused by volatile fuel prices, geopolitical tensions and increasingly short booking windows, he said the airline would continue investing in premium products, customer service and operational reliability while improving efficiency and strengthening its cost base.

SWISS expects these measures to support a return to sustainable, profitable growth from 2027 onwards.