Lufthansa Marks 700th Airbus Delivery as Analysts Weigh Fuel Costs Against Quarterly Beat

Lufthansa Group took delivery of its 700th Airbus on Tuesday — a new A350-1000 fitted with the Allegris cabin and configured for 300 seats. The aircraft is slated to enter service from Munich to Tokyo starting 3 December 2026, giving the milestone jet an immediate route assignment.

The delivery lands amid a busier stretch for the group. On 3 November, Lufthansa published third-quarter 2026 results showing revenue of EUR 12.2 billion, up nine percent year on year. Adjusted EBIT climbed six percent to EUR 1.4 billion — a performance that beat expectations.

Fuel told a different story. Kerosene costs ran EUR 543 million above the prior-year figure in the quarter, and the group now expects a full-year fuel bill of EUR 9.3 billion. Management responded by narrowing its 2026 adjusted EBIT guidance to a range of EUR 1.7 billion to EUR 2.0 billion, trimming the upper end on higher fuel expenses.

RBC Trims Forecasts, Keeps Neutral Stance

Analyst Ruairi Cullinane at RBC cut his 2027 EBIT estimate by roughly four to five percent on Wednesday, citing elevated fuel costs, while reducing his 2028 projection by about two percent. The broker held its sector-performer rating and left its price target at EUR 8.50.

Bernstein Research takes a more constructive view on valuation, though its recommendation is equally cautious. On 5 November the firm lifted its price target to EUR 9.50 from EUR 9.00 while maintaining a market-perform rating. The two houses now sit at different target levels without either issuing a buy call.

Hedging offers only partial relief. Lufthansa had covered 86 percent of its passenger aircraft fuel needs for the full year, and more than 60 percent of 2027 requirements are already locked in. The scale of the reported increase shows what slipped through that cushion.

TAP Stake Adds a Strategic Layer

Roughly a week before the quarterly release, the group signed an agreement with the Portuguese government to acquire an initial 44.9 percent stake in TAP Air Portugal for EUR 1.02 billion. Completion depends on approval from the European Commission, among other conditions.

Shares finished Wednesday up 0.9 percent — a muted but positive reaction that sits oddly beside RBC's reduced estimates. Investors appear to be pricing the prospects more generously than the research house, which is giving greater weight to cost risks. The better-than-expected quarter supports the market's read; the lowered profit ceiling and the fuel headwind argue for restraint. A more favorable earnings picture would require the underlying business to absorb those costs more effectively.