Lufthansa shares tumble over 11% after outlook cut on Mideast war

Lufthansa shares fell more than 11% in trading on the Frankfurt exchange as of 9.05am on Tuesday after the German airline group cut its profit outlook, hit by surging jet fuel prices linked to the war in the Middle East.

The firm now expects core profit of between €1.7 billion and €2.2 billion (US$2 billion and US$2.5 billion) for 2026, having previously expected "significantly" higher earnings this year compared to the 2025 figure of €1.96 billion.

"Excluding one-off effects, core profit fell almost 56% to €383 million in the second quarter," Lufthansa said, even as sales rose 10% to €11.1 billion in the three months to the end of June.

Higher fuel prices increased costs by about €750 million, according to the group, which also operates Swiss, Brussels Airlines and Eurowings in addition to the Lufthansa brand.

Speaking on an earnings call, Lufthansa finance boss Till Streichert said there was a question mark over how much the carrier could pass higher fuel costs onto customers.

"We are of course expecting to continue our strategy in the second half of the year of raising ticket prices to compensate for higher fuel costs," he said.

"Visibility there is somewhat lower than it would otherwise be because we are seeing customers book less in advance," he added.

Streichert said Lufthansa had managed to pass on about 60% of higher fuel costs to customers. "We could make up for a good amount of these additional costs," he said. "But not entirely."

Lufthansa is the latest airline to have been hit by soaring jet fuel prices as the war in the Middle East rumbles on, disrupting supplies of petrochemical products down the Strait of Hormuz.

British Airways parent IAG said on Friday that net profit fell more than a third, while Air France-KLM, Easyjet, American Airlines and Ryanair last month all reported nosediving profits as a result of the war.

Strike action at Lufthansa also hit earnings by €200 million in the three months to the end of June, the company said. Thousands of Lufthansa flights have been cancelled so far this year, hit by repeated walkouts from cabin crew and pilots in a dispute over pay and pensions.