Lufthansa cuts profit outlook as Iran war drives up fuel costs

Lufthansa on Tuesday cut its 2026 outlook for adjusted operating profit after second-quarter results more than halved, driven by higher fuel costs linked to the U.S.-Iran war. The German airline now expects adjusted operating profit (EBIT) of €1.7 billion to €2.2 billion, or $1.96 billion to $2.53 billion, citing uncertainty from volatile kerosene prices. CEO Carsten Spohr said load factor improvements and a rise in yield weren’t enough to offset the fuel increase. Lufthansa reported adjusted EBIT of €383 million in Q2, down from €870 million a year earlier, and slightly below analyst consensus. It also expects fuel costs of €8.66 billion, down from a prior €8.9 billion estimate, and plans to retire or temporarily ground fuel-intensive aircraft including Airbus A340-600 and two Boeing 747-400s from the start of the winter schedule.