Lufthansa shares fall 11% after outlook cut

Lufthansa shares fell more than 11% in Frankfurt on Tuesday after the German aviation group cut its 2026 profit outlook, citing volatile jet fuel costs during the Mideast war.

The company now expects core profit of between 1.7 billion and 2.2 billion euros, or $2.0 billion to $2.5 billion, this year. It had previously expected core profit to be significantly above the 2025 figure of 1.96 billion euros.

Lufthansa said second-quarter core profit, excluding one-off effects, fell almost 56% to 383 million euros, even as sales rose 10% to 11.1 billion euros in the three months to the end of June.

Higher fuel prices increased costs by about 750 million euros, according to the airline group, which operates Lufthansa, Swiss, Brussels Airlines and Eurowings.

Chief financial officer Till Streichert said on an earnings call that Lufthansa expected to keep raising ticket prices in the second half of the year to offset higher fuel costs, but said visibility was lower because customers were booking less far in advance. He said the group had passed on about 60% of higher fuel costs to customers, adding that it could not cover the increase entirely.

Lufthansa also said strike action reduced earnings by 200 million euros in the second quarter. Thousands of Lufthansa flights have been cancelled this year during walkouts by cabin crew and pilots in a dispute over pay and pensions.