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Brussels Airlines has fuel for at least next 4 to 6 weeks

by Timothy••0

Brussels Airlines has received assurances from its fuel suppliers that kerosene deliveries are secured for the next four to six weeks, CEO Dorothea von Boxberg announced on Wednesday. The airline has hedged 80% of its kerosene, locking in prices and shielding itself from recent price spikes. This strategy provides a competitive edge, particularly over United States carriers, which traditionally hedge less or not at all.

Von Boxberg dismissed concerns about potential flight cancellations due to fuel shortages, stating, “There will always be a supply of fuel”.

She noted that new supplies are emerging from regions outside the Middle East, and Brussels Airlines benefits from its proximity to NATO’s pipeline system, which connects to refineries and strategic reserves in Antwerp and Rotterdam. However, she acknowledged the uncertainty surrounding the duration of the Strait of Hormuz blockade, which remains the industry’s biggest concern.

Financial strain and operational challenges

The ongoing Middle East crisis is weighing heavily on Brussels Airlines’ finances. CFO Nina Öwerdieck confirmed that higher fuel prices have made the airline’s target of an 8% profit margin unachievable for 2026, though the company still expects to remain profitable. 

The airline also faces repeated disruptions from Belgian union protests, with the national strike in March costing over €1 million. Another day of action is planned for next week, adding further financial strain. “It is demotivating and an additional burden in these times,” von Boxberg said. “We are not involved in the dispute, but we do foot the bill.”

Parent company Lufthansa Group reported an operating loss (EBIT) of €612 million in the first quarter of 2026, attributing it to rising kerosene prices. To offset costs, the group is cancelling flights and increasing ticket prices. 

However, the conflict has also driven passengers away from Persian Gulf airports, benefiting Lufthansa’s alternative hubs. The group’s revenue rose by 8% in the first quarter, and it expects its 2026 operating profit to be at least 10% higher than in 2025.

First-quarter results reflect a volatile start

Brussels Airlines reported an adjusted EBIT of -€55 million for the first quarter of 2026, a 4% decrease year-on-year. While January and February saw strong operational performance, with an 18% increase in available seat kilometres (ASK) and robust passenger demand, particularly on Sub-Saharan African routes—the momentum stalled in March. 

Capacity growth dropped to just 1% year-on-year due to the national protest on 12 March, which disrupted operations despite the airline’s non-involvement.

Fuel costs surged in March, with expenses per available seat kilometre rising by about 14% compared to 2025. The Lufthansa Group’s hedging strategy partially mitigated the impact, but the increase underscores the airline’s vulnerability to geopolitical and energy market fluctuations.

Looking ahead, Brussels Airlines is redeploying capacity across its European network, cancelling flights to the Middle East and reassigning an Airbus A320neo. 

Öwerdieck emphasised the need for agility, stating, “The world today is so volatile that it is impossible to predict where we will be in just a few weeks’ time.” She highlighted ongoing investments in the airline’s brand, product, and fleet, such as the arrival of new Airbus A320neo aircraft and the renovation of its lounge, The Loft.

Industry-wide fuel uncertainty

While analysts warn of potential kerosene shortages, travellers continue to book flights, and most airlines are maintaining their summer schedules. Von Boxberg confirmed that suppliers are providing weekly guarantees for the next four to six weeks, but the long-term outlook remains uncertain. 

“It is a very difficult situation”, she admitted, though she believes fears of a complete halt to flights are exaggerated.

European refineries are adapting to the crisis, with TotalEnergies maximising kerosene production. However, Europe’s refining capacity has declined in recent years, with five refineries closing in the past two years alone. 

The European Union now imports a net 10 million tonnes of kerosene annually, with nearly half previously coming from the Middle East. Alternative supplies from the US, Africa, and Israel are helping to fill the gap, but it remains unclear whether this will be sufficient to meet demand.

Brussels Airport holds a strategic advantage due to its proximity to major refineries and direct access to NATO’s pipeline system. However, peripheral airports reliant on truck deliveries may face shortages first. Lufthansa is already preparing contingency plans, including additional refuelling stops for flights to destinations at risk of shortages.

Rising costs and flight cancellations

The crisis has already led to flight reductions. In April, global airlines cancelled about 500 flights per day (1–2%), and in early May, 12,000 flights (2 million seats) were scrapped, according to Cirium. 

Lufthansa alone plans to cancel 20,000 flights in the coming months. While these decisions are primarily driven by cost rather than physical shortages, the financial strain is evident. Lufthansa Group’s fuel costs are expected to rise by €1.7 billion this year, despite 80% of its kerosene needs being hedged. Higher ticket prices and cost-cutting measures, including the removal of less profitable routes, are being implemented to offset the impact.

The summer season remains a priority for airlines, as high demand allows for maximised operations. However, schedules may be revisited in the winter if the crisis persists. The duration of the Strait of Hormuz blockade remains the sector’s biggest unknown, though reports of Tehran reviewing a US-backed peace proposal have offered some hope.

A cautious path forward

Brussels Airlines remains confident in its long-term strategy but acknowledges the need for flexibility. Öwerdieck stressed the importance of operational reliability, cost control, and customer experience in navigating the uncertain environment. “We must remain agile and continue to adapt quickly to whatever comes our way,” she said.

The airline’s ability to weather the storm will depend on its hedging strategy, operational resilience, and the broader geopolitical landscape. For now, Brussels Airlines and its parent company are focusing on maintaining stability while preparing for potential further disruptions.

Brussels Airlines news

On the effects on the Strait of Hormuz conflict

🇧🇪 Blogger, keen vexillologist, train conductor NMBS/SNCB, traveller, F1 follower, friend of Dorothy.

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