Lufthansa sees strong demand despite Iran war; Plans fare hikes, cost cuts

(Sharecast News) - German flag carrier Lufthansa held 2026 earnings guidance on Wednesday, saying it would hike fares and cut costs to mitigate the €1.7bn impact of the Iran war on jet fuel prices. The company, which owns Swiss Air, Austrian Airlines, Brussels Airlines, ITA Airways and Eurowings, also reported narrower operating losses of €612m in the three months to March 31 compared with €722m a year earlier and consensus expectations of a €659m loss.

It confirmed guidance of adjusted operating profit well above the £1.96bn reported in 2025. The group plans to offset higher jet fuel costs "through increased revenue from ticket sales, optimised network planning, and further cost-saving measures".

"The ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel, and for our company as well," said chief executive Carsten Spohr in a statement.

"However, we are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development."

The airline said the US-Israel war on Iran and Lebanon had seen increases in demand to African and Asian hubs, while cargo flights were also proving lucrative as supplies via the Middle east became constricted.

"Global demand for air travel remains high and continues to prove resilient even in times of crisis. Against this backdrop, Lufthansa Group again expects a strong travel summer. Additional momentum comes from shifts in passenger flows: travelers are increasingly shifting from airports in the Gulf region to Lufthansa group hubs against the backdrop of the Middle East crisis."

Reporting by Frank Prenesti for Sharecast.com