German aviation giant Lufthansa has warned that the escalating conflict in the Middle East is creating significant uncertainty for the global aviation industry, highlighting the sector’s continued vulnerability to geopolitical crises.
The conflict, which erupted last weekend following U.S.–Israeli strikes on Iran and subsequent retaliatory attacks by Tehran, has triggered widespread disruptions to international air travel. The situation has led to the closure of key airspaces and disruptions at major transit hubs across the Gulf region.
Lufthansa said the developments represent the most severe disruption to global aviation since the COVID-19 pandemic.
Speaking as the airline group announced its 2025 financial results, Lufthansa Chief Executive Officer Carsten Spohr said the crisis underscores the fragile nature of global air travel networks.
“The war in the Middle East once again demonstrates how exposed air traffic remains,” Spohr said. “Even though the industry is now more resilient than before, it is still highly vulnerable to geopolitical shocks.”
He also warned that the heavy concentration of global flight connections through Gulf transit hubs has become a growing strategic risk.
“The massive concentration of global traffic flows via Gulf hubs is increasingly proving to be a geopolitical Achilles’ heel,” he added.
Surge in Demand for Alternative Routes
With airspace closures and disruptions affecting major hubs such as Dubai and Doha, Lufthansa said it is witnessing a sharp rise in demand for long-haul flights to Asia and Africa as passengers seek alternative travel routes.
Spohr told reporters the airline is considering deploying additional long-haul services at short notice to accommodate the surge in demand.
“We are seeing an enormous increase in demand for long-haul flights to destinations in Asia and Africa,” he said, noting that possible destinations for additional services include Bangkok, Singapore, and cities in India.
However, he acknowledged that the airline’s capacity remains limited.
“We do not have an unlimited number of aircraft, but we will deploy and schedule as many as possible at short notice,” he explained.
The airline group is also assisting efforts to evacuate thousands of German tourists currently stranded in the Middle East by organizing special repatriation flights.
Oil Price Volatility Raises Concerns
Lufthansa also flagged rising volatility in global oil markets as another potential challenge. The ongoing conflict has pushed energy prices higher, including the cost of jet fuel, which remains one of the airline industry’s largest operational expenses.
Despite the risk, Lufthansa’s Chief Financial Officer, Till Streichert, expressed confidence that the company’s hedging strategy would help cushion the impact of fluctuating fuel prices.
Before the outbreak of the conflict, airlines had been benefiting from relatively lower oil prices, which had helped ease operational costs.
Strong Financial Performance in 2025
Despite the uncertain outlook, Lufthansa reported strong financial results for 2025, posting an operating profit of €1.96 billion ($2.27 billion), approximately 20 percent higher than the previous year and exceeding market forecasts.
Group revenues rose five percent to €39.6 billion, while its airlines carried about 135 million passengers during the year, representing a three percent increase compared to 2024.
The improved results mark a recovery from 2024, when profits were significantly affected by strikes, delays in aircraft deliveries, and rising operational costs.
Lufthansa — which operates several major airlines including Eurowings, Austrian Airlines, Swiss International Air Lines, and Brussels Airlines, and holds a stake in Italy’s ITA Airways — described 2025 as a “transitional year” as it continues to implement a broad restructuring and turnaround programme.
As part of the restructuring, the group is cutting approximately 4,000 jobs, primarily administrative positions in Germany.
Spohr said the company’s turnaround efforts are beginning to show results, with Lufthansa’s flagship carrier returning to profitability.
He emphasized that strengthening the airline’s core operations will remain a top priority moving forward.
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