Lufthansa braces for $2 billion fuel cost surge. Germany's largest airline faces enormous financial pressure as Middle East conflict disrupts global energy markets. The carrier reported first-quarter revenue of 8.7 billion euros, up 8 percent year-over-year, but expects to absorb 1.7 billion euros in additional fuel costs throughout 2026. With 80 percent of jet fuel hedged, Lufthansa plans to offset impacts through cost-cutting measures and increased ticket revenue. The broader aviation sector faces acute challenges as jet fuel prices surged 103 percent by March's end. Europe confronts a potential supply crisis, with the International Energy Agency warning of imminent shortages due to Strait of Hormuz blockades. Middle East refineries supply 75 percent of European jet fuel. Lufthansa has already eliminated 20,000 short-haul flights to conserve 40,000 metric tons of fuel.
