economy
Lufthansa faces nearly $2 billion in extra fuel cost amid the Iran war, after axing 20,000 flights
Germany's largest airline, Lufthansa, is taking on additional fuel costs as the Middle East conflict poses 'enormous challenges.'
TL;DR
- Lufthansa expects to incur 1.7 billion euros ($2 billion) in additional fuel costs this year and in 2026.
- The Middle East conflict and rising fuel prices are presenting significant challenges for global air travel.
- Lufthansa reported a first-quarter operating loss of 612 million euros but saw revenue rise to 8.7 billion euros.
- The airline has already reduced 20,000 short-haul flights to save fuel.
- Jet fuel prices surged 103% by the end of March compared to the previous month.
- Europe faces a jet fuel crunch, with concerns about supply shortages due to the blockade of the Strait of Hormuz.
- EasyJet reported £25 million ($34 million) in additional fuel costs and a headline loss between £540 million and £560 million for the six months to March 31.
- Middle East refineries supply approximately 75% of Europe's jet fuel, with alternative sources being sought from the U.S. and Nigeria.