Lufthansa adds more flights to Asia, Africa as Middle East war reshapes air travel

By Joanna Plucinska and Ilona Wissenbach

LONDON, March 6 (Reuters) – Lufthansa on Friday said it was reallocating capacity from ten cancelled destinations in the Middle East to other locations like Singapore and Bangkok as it deals with the fallout of the U.S.-Iran air war in the Middle East.

The move comes as airlines across Europe, including budget carrier Wizz Air, say they are redirecting capacity to other destinations as they pull operations out of the Middle East.

Airline stocks have been hammered this week as U.S. and Israeli airstrikes on Iran – and retaliatory strikes by Iran across the Gulf – have disrupted long-haul flights and sent oil prices soaring.

“The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains,” CEO Carsten Spohr said in a statement.

Spohr added that the outlook for 2026 was murky as a result of the instability triggered by the war, particularly when it comes to the price of jet fuel.

The airline announced the change in its schedule at a press conference for its 2025 results, where it reported better-than-expected results as stricter financial management and fleet renewal helped the airline contain costs and boost profits.

The German group’s shares rose as much as 4% in early trading, before retreating to stand up 0.5% at 1100 GMT.

Lufthansa said it had seen substantially higher demand on routes to and from Asia and Africa since the conflict began on Saturday, adding it would stick with its strategy of expanding long-haul services. Spohr told reporters that new flights to Asia would be launched in days.

Lufthansa did not share how many flights it had to cancel as a result of the conflict.

While airlines face costs for rescheduling and rerouting services, the biggest impact for those outside the Middle East is likely to come from surging fuel costs. Brent crude oil futures have jumped 17.2% this week.

Spohr said Lufthansa was well hedged and shielded in the short term from oil price spikes.

RESILIENCE

European carriers, including Lufthansa, benefited from slightly lower fuel bills in 2025, bolstering earnings as passenger demand stayed strong. Lufthansa’s fuel bill fell 7%.

“Last year we were able to significantly increase the Group’s operating profit and achieved the highest revenue in our history. Our results demonstrate the resilience and stability of the Group,” Spohr said.

Lufthansa reported an adjusted operating profit of 2 billion euros ($2.3 billion), compared with 1.9 billion euros forecast in a company-compiled analyst poll and up from 1.6 billion euros in 2024. The group also posted an operating margin of 4.9%, up from 4.4% a year earlier.

Lufthansa aims to lift operating margins to 8%-10% between 2028 and 2030 from 4.4% in 2024, but strikes by workers, including the most recent on February 12, have made it harder to boost profitability.

Bernstein analyst Alex Irving said ongoing weakness in the passenger airline segment persisted, but added that strong performances in Cargo and Lufthansa Technik helped bolster profits.

The carrier said the outlook for 2026 was unclear due to geopolitical uncertainty. It projected capacity growth of 4%, alongside increased revenue and profit margin.

($1 = 0.8610 euros)

(Reporting by Joanna Plucinska. Editing by Mrigank Dhaniwala and Mark Potter)