Expensive Fuel Hits Airlines; LOT Cuts Costs, Lufthansa Reduces Perks

Record-high fuel prices are hitting airlines hard, compelling them to implement unconventional cost-saving measures and even charge for services that were once complimentary. This financial pressure is forcing carriers to scrutinize every expenditure and seek ways to mitigate the impact of soaring fuel costs, which now represent a substantial portion of their overall expenses.

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We don't have ideas like Lufthansa – assures Krzysztof Moczulski, LOT spokesperson.

German carrier Lufthansa has reported a drastic drop in its second-quarter profits for 2026, falling from 870 million euros to 383 million euros. The airline's operating margin also decreased significantly. Lufthansa's CEO, Carsten Spohr, acknowledged that increased ticket prices have not compensated for the rise in fuel expenses, necessitating a search for savings wherever possible. This includes reducing perks for business and even first-class passengers, who may now have to pay extra for certain amenities. Exceptions are made for passengers with the highest loyalty program status, Hon Circle.

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But we are watching every zloty we have to spend. We are renegotiating contracts, and in this crisis, every market participant wants to shift costs onto partners.

For instance, business class passengers on Airbus A380 flights might pay an additional 170 euros for a window seat or extra legroom on a one-way journey. These charges can increase to 230 euros on longer routes for Airbus A350 and Boeing 787 aircraft. Lufthansa has also scaled back its plans for capacity expansion.

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We are reducing capacity on routes where demand is lower, suspending some connections for the winter period.

In contrast, LOT Polish Airlines assures it is not resorting to the same drastic measures as Lufthansa. However, the airline is meticulously managing its finances, renegotiating contracts, and dynamically adjusting its capacity based on demand. LOT is reducing services on routes with lower demand and temporarily suspending some connections during the winter. Despite these measures, LOT's fleet modernization plans remain on track, with the phasing out of smaller Embraers and older Boeing 737-300s, and the introduction of larger Airbus A220-300 aircraft. The airline also continues with its plans to launch new routes, including recent additions like Hanoi and upcoming flights to Bangkok.

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Lufthansa's profit fell sharply in Q2 2026, decreasing from 870 million euros a year ago to 383 million euros.