Lufthansa reduces projections for 2026 as aviation fuel rises
Estimated fuel spending reaches 9.3 billion euros in 2026, and the company cut its profit outlook for the year.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
On Tuesday, November 3, Lufthansa revised down its profit outlook for 2026, according to InfoMoney, based on information from Reuters. The main reason is the cost of aviation fuel, which the company estimates at 9.3 billion euros for the year, with an upward trend.
The third quarter results were in line with the company's forecasts, according to the same coverage. Investing.com highlighted, however, that the period's performance was hampered by high aviation fuel costs. The greatest weight, in this case, falls on an input that makes the operation bill more expensive.
The situation is not restricted to Lufthansa. According to InfoMoney, based on Reuters, European airlines warned that the rise in aviation fuel, attributed to the war in Iran, will weigh on their prospects.
Another point is the effect on the passenger. Also according to InfoMoney and Reuters, ticket prices are expected to rise next year, with the expiration of hedge contracts, instruments that protect the company against price fluctuations. In other words, the company no longer has this protection, and the cost tends to end up in the pockets of those who fly.
For the sector, the question at stake is to what extent the fare adjustment can compensate for more expensive fuel without driving away passengers. The available data does not answer this question, but the case shows how an external price shock crosses an entire chain, from the fuel supplier to the traveler.
What changes for the investor
For those who follow airlines on the stock exchange, the revision of projections is the most direct sign: it indicates that the profit forecast for 2026 was below what was previously expected, due to fuel. The possible effect is pressure on margins, and the intensity depends on how much the price transfer can compensate for the higher cost. In the coming quarters, it is worth observing whether the increase in tickets is confirmed and how demand reacts. This article does not provide a purchase or sale recommendation or price projections.
Automatically translated from Portuguese.
