Lufthansa Signals Higher Fares as Iran War Drives Up Jet Fuel Costs

Lufthansa is the newest airline to join the growing list of airlines that are planning to increase the fare. The US-Israeli strike on Iran and the closure of the Strait of Hormuz have increased the jet fuel cost. Lufthansa has estimated a jump of nearly €2 billion in their fuel bill in 2026. 

Fuel at the center of the problem

According to a report by Deutsche Bank, fuel is one of the biggest contributors to airlines' operating costs, nearly 30%. When the conflict began, the average global jet fuel price jumped about 58% within a week, the International Air Transport Association estimated. 

According to the Intelligence Energy Agency (IEA), Europe imports 75% of its total fuel from the Middle East. Kuwait’s Al-Zour refinery alone accounted for roughly a tenth of those imports, according to Energy Intelligence, before a fire disrupted its exports in October 2025. In April, IEA chief Fatih Birol told the Associated Press that Europe had perhaps six weeks of jet fuel left if supplies stayed blocked.

What Lufthansa has said

On November 3, during an official media conference call while discussing the third quarter earnings, Lufthansa chief executive Carsten Spohr told the reporters that "ticket prices will rise by double digits next year, and we see it the same way." 

He further added that “we need these increases in ticket prices in order to compensate for higher fuel prices.” 

The group later said that Lufthansa is expecting a full-year adjusted earnings to fall somewhere between €1.7 billion and €2 billion before interest and tax, which is comparatively lower than the estimate of the last year. 

Finance chief Till Streichert called fuel the most significant cost headwind for the rest of the year.

The company is hoping to cover the extra cost through the revenue from higher tickets and cost-cutting. Lufthansa has protected itself against the price hike by locking in the price for 80% of its fuel. The remaining 20% is estimated to cost them about €1.5 billion. 

Fewer flights as well as higher fares

Lufthasna Airlines has decided to cut 20,000 of its short-haul flights to save about 40,000 metric tons of fuel. The company is combining the operations across its main hub airlines. Also, the airline has shut down one of its subsidiary companies before the planned schedule to save the cost.  

The airline has reduced its flight capacity to the Middle East and added 40 extra flights to Asia, and these flights were sold out within a few days. 

What it means for travelers

The analyst has pointed out that they are unlikely to see a reduction in the fare prices of the flight until the war ends completely. The travelers can expect higher prices, especially on the longer routes. 

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