Lufthansa, Germany's largest airline, has reported an additional 1.7 billion euros (nearly $2 billion) in fuel costs for the first quarter of 2026, driven by the ongoing conflict in the Middle East.
The situation has created 'enormous challenges' for the company, according to its earnings report.
The surge in fuel expenses reflects broader industry pressures as jet fuel prices have risen sharply since the conflict began.
This development aligns with earlier warnings from European airline executives, including Ryanair's CEO, who cautioned that high fuel costs could lead to 'real failures' in the sector.
The conflict has disrupted key shipping routes, including the Strait of Hormuz, a critical oil export corridor.
The continued closure of this passage has contributed to higher global oil prices, which in turn have increased operating costs for airlines.