Lufthansa Navigates Fuel Crisis as Key Shareholder Meeting Looms

A severe jet fuel shortage is forcing Lufthansa to slash thousands of flights this summer, casting a shadow over its upcoming quarterly results and annual shareholder meeting. The airline group, which uses Frankfurt as its primary hub, is acutely exposed to supply disruptions stemming from the blocked Strait of Hormuz, where oil transport has been severely hampered.

Analysts at JPMorgan have responded to the mounting pressures by cutting their price target for Lufthansa shares to €7.50, while maintaining a “Neutral” rating. The stock, trading around €7.48, already sits just below this new target and has shed roughly 12% since the start of the year. This places the share price approximately 21% below its 52-week high from February and clearly under its 200-day moving average.

The fuel crisis is a pan-European issue, with carriers like SAS, KLM, and Iberia reporting similar logistical headaches. For Lufthansa, the timing is particularly poor as it typically ramps up capacity to meet strong spring and summer demand. Jet fuel is the largest variable cost in flight operations, and prices have reportedly doubled since the onset of the regional conflict, directly threatening near-term profitability.

In a drastic move to conserve fuel, Lufthansa is cutting 20,000 short-haul flights, primarily from Frankfurt and Munich, through October 2026. This measure is expected to save around 40,000 tonnes of kerosene. The company plans to shift some capacity to its other hubs in Zurich, Vienna, and Brussels in an effort to keep its network largely stable. The strategy represents a clear trade-off: sacrificing short-haul revenue to mitigate soaring fuel expenses.

Should investors sell immediately? Or is it worth buying Lufthansa?

Investors will get a first look at the operational impact when Lufthansa Group releases its Q1 2026 interim report on May 6. The market will scrutinize the extent to which fuel costs and flight cancellations have already dented the balance sheet. For the full 2026 fiscal year, analysts currently project earnings per share of €1.07.

The following week, on May 12, the company will hold its 73rd Annual General Meeting in Frankfurt. The agenda includes a proposed dividend of €0.33 per share for the 2025 financial year, an increase from the previous year’s €0.30. The ex-dividend date is set for May 13. Shareholders will also vote on the election of Dr. Johannes Teyssen as the designated Chairman of the Supervisory Board and Wolfgang Nickl as a new member.

Technically, the stock appears oversold, with a Relative Strength Index (RSI) reading of just under 25. However, with no immediate catalyst for a rebound in sight, the Q1 figures will be pivotal. They will reveal whether internal efficiency programs have been enough to cushion the blow from operational headwinds or if Lufthansa will need to adjust its guidance for the crucial summer season.