German airline group Lufthansa reported a 56% decline in second-quarter profit on Tuesday, as sharply higher fuel costs and geopolitical uncertainty weighed on earnings despite a rise in passenger revenue.
Excluding exceptional items, profit fell nearly 56% to €383 million, the company said. Revenue nevertheless rose 10% to €11.1 billion during the quarter ending in late June.
Lufthansa, which owns Swiss, Brussels Airlines, Eurowings and the flagship Lufthansa carrier, said higher fuel prices increased its costs by around €750 million during the quarter.
"The second quarter was characterised by exceptionally high fuel costs and increased geopolitical uncertainty," Lufthansa chief financial officer Till Streichert said.
"We are confident that the consistent execution of our strategy, cost discipline, network optimisation and persistently high demand will offset a significant portion of the cost increases," he added.
The results make Lufthansa the latest major airline to report weaker profitability as higher fuel prices continue to affect the aviation sector.
The increase in fuel costs has been linked to disruption in petrochemical supplies moving through the Strait of Hormuz, as conflict in the Middle East continues to affect global energy markets.
Other major carriers have reported similar pressure on earnings.
Last week, IAG, the parent company of British Airways, said net profit had fallen by more than one-third. In recent weeks, Air France-KLM, EasyJet, American Airlines and Ryanair have also reported lower profits, citing the effects of the conflict and higher fuel expenses.
Lufthansa also revised its outlook for the year.
The group now expects adjusted operating profit for 2026 to be between €1.7 billion and €2.2 billion.
Previously, the airline had forecast that annual earnings would be "significantly" higher than last year's result of €1.96 billion.
The revised guidance reflects the continuing uncertainty surrounding fuel markets and the wider geopolitical environment, even as passenger demand remains resilient.
Source: CNA
