Lufthansa Beats Estimates on Cost Discipline as Barclays Turns Bullish on Jet Fuel Relief
Published on 11/07/2026 at 16:55 | Editorial boerse-global.de
Lufthansa shares climbed 3.9% on Friday to close at EUR 8.40, bucking a weaker broader market as Barclays' more constructive view of European airlines — built on expectations of falling fuel costs and sturdier flight demand — lifted sentiment across the sector.
The upgrade in tone lands alongside hard numbers that show how much fuel still matters to the group's bottom line. Lufthansa said Tuesday that higher fuel costs weighed on quarterly profit by more than EUR 0.5 billion, and it expects a full-year fuel bill of EUR 9.3 billion. Fuel expenses ran EUR 543 million above the prior-year level in the third quarter.
Even so, the airline managed to raise its adjusted operating profit by 6% year on year to EUR 1.407 billion in the third quarter of 2026, with management crediting strong demand and cost discipline for more than offsetting the fuel headwind. Revenue rose 9% to EUR 12.2 billion over the same period. Media reports said the quarterly result beat expectations, feeding the positive share-price reaction.
For the full year 2026, Lufthansa narrowed its guidance for adjusted operating profit to a range of EUR 1.7 billion to EUR 2.0 billion.
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Barclays' more favorable sector call also pointed to falling fuel prices coming into view after the US midterm elections, which the brokerage expects to underpin more resilient demand. Bernstein analyst Alex Irving, meanwhile, focused on the third-quarter beat while flagging the higher fuel costs and the ambitious revenue-per-seat-kilometer improvement needed in the final quarter to hit the annual target.
TAP Deal Signed, Pending Brussels Approval
Away from the earnings picture, Lufthansa and the Portuguese government signed an agreement on Tuesday covering the German group's planned entry into TAP Air Portugal. The deal covers an initial 44.9% stake for EUR 1.025 billion, with the total purchase price potentially reaching up to EUR 1.2 billion once a possible stake increase and a time-dependent additional fee are included. Completion remains subject to regulatory clearances, including approval from the European Commission.
In a separate disclosure, a share purchase by a supervisory board member was reported: Astrid Stange bought Lufthansa shares on Thursday for a total of EUR 153,759.
Lufthansa at a turning point? This analysis reveals what investors need to know now.
Investors have two dates to circle. Lufthansa Group will publish its 2026 annual report on March 5, 2027, and the next confirmed conference appearance is the UBS European Conference in London on November 11.
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