Europe’s largest airline reaffirms full-year targets despite a $2 billion increase in jet fuel expenses for 2024.
Deutsche Lufthansa AG held its full-year earnings forecast unchanged after absorbing a $2 billion rise in jet fuel costs. The airline cited strong demand and cost-control measures as offsets to higher fuel prices, which now total $2 billion above initial projections for 2024.
Analysts had expected Lufthansa to trim its outlook, given the 20% year-to-date increase in Brent crude prices. The company’s prior guidance called for adjusted EBIT of €2.2 billion, matching 2023 levels. Fuel costs typically account for about 25% of Lufthansa’s operating expenses.
Shares rose 1.8% in Frankfurt trading, outperforming the Stoxx 600 Travel & Leisure index, which gained 0.7% on the day.