Lufthansa, a German airline group, has warned that its operating profit could fall this year due to higher fuel costs tied to the U.S.-Iran war. The company’s shares were down 10.35% as investors focused on the uncertain outlook and worse-than-expected quarterly results.
Financial Projections
Lufthansa forecast its 2026 adjusted earnings before interest and tax would be €1.7 billion to €2.2 billion ($2.0 billion to $2.5 billion), which is lower than its previous projection. The company’s adjusted EBIT fell to €383 million in the second quarter from €870 million a year earlier.
Despite the challenges, Lufthansa maintained its longer-term targets, including reaching an operating margin of 8% to 10% between 2028 and 2030. The company plans to retire or temporarily ground several aircraft to streamline operations, reduce fuel consumption, and limit exposure to unhedged fuel costs.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
