Lufthansa Prepares to Ground Up to 40 Aircraft as Middle East War Spikes Fuel Costs

Lufthansa Group is preparing contingency plans to ground between 20 and 40 aircraft in response to surging jet fuel costs and potential supply shortages triggered by the war in the Middle East, Lufthansa Group chief executive Carsten Spohr told employees at an internal company meeting on Tuesday. The plans, first reported by Handelsblatt and subsequently confirmed by a Lufthansa spokesman cited by Bloomberg, envision two distinct scenarios depending on how the conflict evolves. Grounding 20 aircraft would reduce the group's available seat capacity by 2.5 percent, while grounding 40 would cut capacity by 5 percent. Spohr made clear that no final decision had been taken, but said the airline's previously planned capacity growth of 4 percent for 2026 was now almost certainly unrealistic. The crisis is being driven not only by record-high jet fuel prices but also by the prospect of outright fuel scarcity, as the effective closure of the Strait of Hormuz has stranded a significant share of global jet fuel shipments and prompted refineries in Asia to cut production.

Older jets face the axe first as fuel bills soar According to the Frankfurter Allgemeine Zeitung, which cited sources within the group, the aircraft most likely to be grounded first are older, fuel-intensive models that Lufthansa had already planned to retire. The Airbus A340 and the Boeing 747-400 are specifically named as the initial candidates, given their comparatively high operating costs. Delivery delays for newer, more fuel-efficient replacement aircraft had previously prevented the airline from retiring these older jets on schedule. The current demand uncertainty — driven by higher ticket prices that Spohr acknowledged will be unavoidable — now provides the occasion to accelerate their removal from active service. Spohr told employees that rising kerosene costs would have to be passed on to passengers, which would in turn suppress demand and reduce the number of travelers. The airline has assigned dedicated teams to begin preparing the necessary operational measures, though the spokesman stressed that implementation remains contingent on how the situation develops. 1 (billion euros) — minimum additional fuel cost from unhedged kerosene exposure

Eighty percent hedged, but the gap still costs billions Lufthansa is among the airlines that hedge most comprehensively against fuel price swings, with contracts covering 80 percent of its kerosene requirements, according to group figures cited by the Frankfurter Allgemeine Zeitung. Even so, the unhedged 20 percent is now generating costs that could exceed one billion euros in additional expenditure. Europe is the main importer of jet fuel from the Persian Gulf, with supplies from that region accounting for roughly half of all European Union and United Kingdom jet fuel imports, according to Vortexa data compiled by Bloomberg News. The US-Israel military operation against Iran, designated Operation Epic Fury, began on February 28, 2026, and resulted in the closure of the Strait of Hormuz, disrupting global energy shipping lanes. The conflict also prompted the death of Supreme Leader Ali Khamenei in the initial strikes, with his son Mojtaba Khamenei appointed as his successor on March 9, 2026. Lufthansa is not alone in responding to the crisis: Scandinavian carrier SAS announced the cancellation of at least 1,000 flights from its April schedule, citing the abrupt rise in global fuel prices. SAS had recently largely waived its own hedging contracts, leaving it more exposed to spot market prices than Lufthansa. United Airlines also announced cancellations, with its reductions — combined with already-suspended Middle East flights — targeting a 3 percent cut in its overall offering. United chief executive Scott Kirby said the current kerosene price level would translate into the equivalent of eleven billion euros in higher costs for the airline.

Lufthansa (scenario 1): 2.5, Lufthansa (scenario 2): 5, United Airlines: 3

TAP bid still alive despite mounting pressure at home Despite the severity of the crisis plans being discussed internally, Lufthansa has not abandoned its broader strategic ambitions. According to Spiegel, cited by Il Sole 24 Ore, the group still intends to submit an offer for TAP Air Portugal in the near term, confirming that expansion plans remain on the table even as the airline braces for a difficult operating environment. As an extreme contingency, Spohr also did not rule out the use of short-time work arrangements for staff if conditions deteriorate further, according to Spiegel. The airline declined to comment publicly on the specific details reported by German media. The situation reflects a broader stress test for European aviation, with fuel now representing the single largest operating cost for carriers and the Middle East conflict showing no sign of rapid resolution. Spohr's communication to employees signals that Lufthansa is moving from monitoring the crisis to actively preparing operational responses, even if the trigger for implementation has not yet been reached.