Lufthansa warns that soaring jet fuel prices will hit the airline €1.7 bn this year, after tensions in the Strait of Hormuz raise concerns over supply. The German carrier reports no immediate shortages at its hubs but flags potential future constraints that could squeeze margins. The spike follows the Iran war’s launch in late February.

To offset the cost, Lufthansa plans to raise fares, trim its flight schedule and accelerate restructuring, mirroring moves by peers such as EasyJet and Virgin Atlantic. The airline cut 20,000 services between May and October and halted flights to Abu Dhabi, Riyadh and other Gulf hubs until October, citing safety and logistics concerns.

Despite the fuel shock, Lufthansa trimmed its Q1 operating loss to €612 mn from €722 mn a year earlier, nudging past analyst forecasts. Group revenue rose 8 % to €8.7 bn, buoyed by displaced traffic from Gulf closures that pushed passengers toward alternative routes. The airline also expanded long‑haul services to Asia and Africa.

Lufthansa confirms it will keep annual adjusted operating profits well above the €2 bn benchmark set for 2025, while cautioning that fuel volatility and regional instability could erode gains. The carrier’s strategy hinges on price adjustments and network realignment, underscoring the broader industry pressure as airlines grapple with fuel hedging limits and geopolitical risk.