Lufthansa lifts third-quarter profit but trims 2026 outlook on fuel costs

Third-quarter profit beats expectations

Lufthansa reported third-quarter results on Tuesday, 3 November, with an adjusted operating profit of 1.4 billion euros, up 6% on the year and above the 1.37 billion euros analysts had expected on average. Revenue rose 9% to 12.2 billion euros, also slightly ahead of forecasts. Net profit was given as 1.25 billion euros by Il Sole 24 Ore and 1.26 billion euros by stern, compared with 966 million euros a year earlier, a rise of about 30%. The adjusted operating margin slipped to 11.5% from 11.9%, even though the group said higher revenue and cost discipline more than offset the extra fuel spending.

Analyst average expectation1.37

Reported Q3 2026 adjusted operating profit1.4

Analyst average expectation

1.37 EUR bn

Reported Q3 2026 adjusted operating profit

1.4 EUR bn

Data from the article text

Chief Executive Carsten Spohr said in a statement that rising revenue and strict cost control had covered the higher fuel bill.

“With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros.”

Fuel costs push up the bill

Jet fuel costs rose by more than half a billion euros in the quarter, a rise the group attributes to the Iran war. When the war began, management had forecast additional fuel costs of about 1.5 billion euros for the year, expecting the Persian Gulf conflict to end quickly. No peace has yet come to the Middle East, though diplomatic talks are under way. The group now expects fuel costs to rise by about 2 billion euros in 2026, with total fuel spending reaching 9.3 billion euros, 600 million euros more than in its summer forecast. At the end of September, Spohr had told reporters that the figure would likely be higher by year end. The 2026 operating profit forecast was cut to between 1.7 billion and 2 billion euros, from an earlier range of 1.7 billion to 2.2 billion euros, while capacity growth is expected to stay flat.

Earlier forecast1.5

Current forecast2

Earlier forecast

1.5 EUR bn

Current forecast

2 EUR bn

Data from the article text

Premium demand carries the quarter

Demand for premium cabins has stayed high, and that is what is holding up earnings. Premium economy, business and first class are the most profitable products for the airline. Lufthansa is hedged for more than 60% of next year's fuel needs, but that cover shrinks the further ahead it looks. Spohr has repeatedly said he is surprised at how stable the premium business has been. The network airlines (Lufthansa Classic, Swiss, Brussels Airlines, Austrian Airlines and ITA) lifted average revenue by 6.8%, which the group ties mainly to premium tickets and routes to Asia and North America. Lufthansa said traffic to those regions was also strong, which helped its resilience.

Cargo, maintenance and the core brand

Lufthansa Cargo tripled its operating profit in the quarter, and Lufthansa Technik earned significantly more from aircraft maintenance. Cost savings also helped absorb the fuel increase. Every airline in the group apart from the core brand Lufthansa Airlines improved its results. CFO Till Streichert said full-year operating profit will depend on demand, fuel costs and the fourth-quarter performance of Lufthansa Cargo. Lufthansa Airlines is the group's struggling core brand, and management's goal is an adjusted operating margin of 8 to 10% by 2030, which depends on that brand's turnaround.

Spohr criticises the German market

In an interview with SPIEGEL, Spohr complained that German working hours are low by international comparison and that co-determination and collective agreements reduce flexibility. He said he remains dissatisfied with developments in the German market despite the quarter's results. His remarks come as the group reports a rise in third-quarter profit. The interview focused on the domestic market rather than on the group's financial figures.