Lufthansa expects challenging second half of 2026 but sees growth in Asia Pacific

SINGAPORE: Lufthansa expects the second half of 2026 to remain challenging for airlines despite easing oil prices, but says it continues to see growth opportunities in Asia Pacific as demand for air travel remains strong.

Speaking to CNA on Wednesday (Jul 1), Lufthansa Group’s vice president for Asia Pacific and joint ventures East Felipe Bonifatti said geopolitical uncertainty, higher costs and sustainability pressures would continue to weigh on the industry.

“We’re not expecting an easy second half, to be honest,” he said.

RISKS REMAIN FOR AIRLINES

The first half of 2026 was marked by significant disruption for the aviation industry.

The war on Iran – which began at the end of February – forced airlines to suspend or reroute flights to avoid large parts of Middle Eastern airspace. At the same time, disruptions to oil shipments through the Strait of Hormuz pushed up crude oil and jet fuel prices.

In June, the International Air Transport Association (IATA) nearly halved its global airline profit forecast for the year, citing war-related disruptions and higher fuel costs.

Although a ceasefire between the United States and Iran has eased tensions and oil prices have retreated from recent highs, Mr Bonifatti said airlines remain cautious about resuming normal operations in the region. 

“The end of the conflict might not be the end of the risks,” he said, noting that airlines would need to carefully assess when and how services can safely resume in the Middle East.