Lufthansa trims outlook on fuel costs after third-quarter profit meet expectations

By Joanna Plucinska and Ilona Wissenbach

LONDON, Nov 3 (Reuters) - German airline group Lufthansa on Tuesday trimmed its profit outlook due to higher jet fuel costs as it reported third-quarter results broadly in line with expectations.

European carriers have warned the spiralling cost of jet fuel will weigh on their outlooks, with ticket prices set to rise next year as hedges expire. 

Lufthansa said its fuel costs rose by more than €400 million ($447.60 million) at the group's airlines compared to last year. 

The company trimmed its operating profit forecast for the 2026 financial year to between €1.7 billion and €2 billion, compared to an earlier range of €1.7 billion to €2.2 billion. It also confirmed that capacity growth for the year was expected to be flat. 

It reported an operating profit of €1.4 billion for its third quarter, which is usually the most profitable for European airlines because it includes the peak summer season. That compared to a company-compiled analyst projection of €1.37 billion.     

"With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros," Lufthansa CEO Carsten Spohr said in a statement. 

Chief Financial Officer Till Streichert said the full-year operating profit will depend on demand, fuel costs and the performance of Lufthansa Cargo in the fourth quarter.

Still, the company said it saw considerable demand in its premium segment, reflecting a trend that major network carriers have flagged. It added that traffic to Asia and North America was also strong, helping to drive resilience. 

($1 = 0.8937 euros)

(Reporting by Joanna Plucinska; Editing by Linda Pasquini and Jamie Freed)