--- title: "Lufthansa Faces Nearly $2 Billion in Additional Fuel Costs Due to Middle East Conflict" type: "News" locale: "en" url: "https://longbridge.com/en/news/285330291.md" description: "The blockade of the Strait of Hormuz has caused European jet fuel prices to double within a single month, leading Lufthansa to forecast a full-year increase in fuel costs of €1.7 billion (approximately $2 billion). The company has canceled 20,000 short-haul flights and hedged 80% of its jet fuel requirements. The IEA warns that aviation fuel demand during the peak travel season could rise by another 40% compared to March, while 75% of Europe's jet fuel relies on imports from the Middle East, making the supply shortfall difficult to resolve in the short term" datetime: "2026-05-06T07:34:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285330291.md) - [en](https://longbridge.com/en/news/285330291.md) - [zh-HK](https://longbridge.com/zh-HK/news/285330291.md) --- # Lufthansa Faces Nearly $2 Billion in Additional Fuel Costs Due to Middle East Conflict The aviation fuel supply crisis triggered by the Middle East conflict is profoundly impacting the European aviation industry. On May 6, Lufthansa released its first-quarter financial report, **forecasting an additional cost burden of €1.7 billion (approximately $2 billion) for the full year due to rising fuel prices**, and warning that the situation in the Middle East poses a "significant challenge" to the global aviation industry. CEO Carsten Spohr stated that although financial performance in the first quarter improved significantly year-on-year, the company faces severe pressure from ongoing geopolitical conflicts combined with rising fuel costs and operational restrictions. He emphasized that Lufthansa possesses sufficient resilience to withstand these shocks. The financial report showed that Lufthansa's adjusted EBIT loss for the first quarter was €612 million, revenue increased by 8% year-on-year to €8.7 billion, and net profit was €665 million, lower than the €885 million recorded in the same period last year. Low-cost carrier EasyJet was also affected, **incurring an additional £25 million in fuel costs in March alone**. Fatih Birol, Executive Director of the International Energy Agency (IEA), warned last month that European aviation fuel inventories are tight, with only a few weeks' worth of supply remaining. ## **Soaring Fuel Costs Force European Airlines to Cut Capacity** The blockade of the Strait of Hormuz has pushed up European jet fuel costs, with market supplies continuing to tighten. Data from the International Air Transport Association (IATA) shows that as of the end of March, aviation fuel prices rose by 103% month-on-month. Faced with sharply rising costs, Lufthansa has **canceled 20,000 short-haul flights**, expecting to reduce fuel consumption by 40,000 metric tons, and **exited unprofitable routes**. The company has **hedged approximately 80% of its jet fuel requirements**, while planning to offset the remaining extra expenses through cost compression and increased ticket revenue. Low-cost carrier EasyJet has also been significantly impacted. The company stated that additional fuel costs reached £25 million in March alone, and the pre-tax loss for the first half of the fiscal year ending March 31 is expected to be between £540 million and £560 million. EasyJet also pointed out that **passenger booking behavior has become more delayed, with booking volumes for the remaining flights this year weaker than the same period last year.** The company has hedged 70% of its summer jet fuel requirements, leaving the remaining 30% exposed to price volatility risks. ## **IEA Warns: Peak Season Demand Could Rise by 40%, European Jet Fuel Shortfall Difficult to Resolve** IEA Executive Director Birol warned that **as the peak travel season approaches, European aviation fuel demand is expected to rise by 40% compared to March, potentially widening the supply gap further.** In terms of supply structure, Middle Eastern refineries account for about 75% of Europe's aviation fuel imports. Birol noted that the remainder mainly comes from some Asian countries, but these nations have implemented export restrictions. Europe is attempting to turn to the United States and Nigeria for alternative sources. Birol stated, "If we cannot secure additional imports from these countries, we will be in trouble." This supply pattern means that before the situation in the Middle East clarifies, the fuel cost pressure on the European aviation industry will be difficult to fundamentally alleviate, and the industry's profitability outlook remains subject to significant uncertainty. ### Related Stocks - [LHA.DE](https://longbridge.com/en/quote/LHA.DE.md) - [DLAKY.US](https://longbridge.com/en/quote/DLAKY.US.md) - [XTN.US](https://longbridge.com/en/quote/XTN.US.md) - [JETS.US](https://longbridge.com/en/quote/JETS.US.md) - [IYT.US](https://longbridge.com/en/quote/IYT.US.md) - [EZJ.UK](https://longbridge.com/en/quote/EZJ.UK.md) - [ESYJY.US](https://longbridge.com/en/quote/ESYJY.US.md) ## Related News & Research - [Lufthansa Q1 loss narrows, keeps 2026 outlook despite fuel hit](https://longbridge.com/en/news/285314904.md) - [Bernstein Sticks to Its Hold Rating for Deutsche Lufthansa (0H4A)](https://longbridge.com/en/news/285333918.md) - [Frontier Airlines forecasts bigger-than-expected second-quarter loss as fuel costs surge](https://longbridge.com/en/news/285204155.md) - [08:26 ETDollar Flight Club Reveals Cheapest Places to Fly for Summer 2026 as Fuel Costs Drive Up Airfare](https://longbridge.com/en/news/285206360.md) - [Lufthansa Q1 Loss Narrows, Revenues Rise On Demand Growth; Backs FY26 Positive View](https://longbridge.com/en/news/285321378.md)