Lufthansa Group expects the surge in jet fuel prices to cost it an additional $2 billion this year as the closure of the Strait of Hormuz “is leading to a shortage in kerosene supply and thus to a significant increase in kerosene prices,” Europe’s biggest airline said on Wednesday.

Lufthansa expects strong summer travel numbers, but it warned that “At the same time, the current closure of the Strait of Hormuz is leading to a shortage in kerosene supply and thus to a significant increase in kerosene prices.”

The war in Iran and the closure of the Strait of Hormuz have severely constrained Europe’s jet fuel supply, while jet fuel prices have spiked to over $200 per barrel.

The war in Iran has cut most of Europe’s imports of jet fuel, while local output has been falling for nearly two decades due to dozens of refineries closing permanently or being converted to biofuel production.

Despite the fact that the airline group has hedged about 80% of fuel costs for 2026, the spike in jet fuel prices “places a substantial burden on the cost base of Lufthansa Group airlines,” it said.

As of current estimates, the kerosene price surge would lead to additional costs of 1.7 billion euros, or $2 billion, in 2026, Lufthansa said.

Source: OilpriceOilprice