Brussels Airlines confident on fuel supply despite Middle East crisis
Brussels Airlines has received assurances from its fuel suppliers that kerosene deliveries are secured for the next four to six weeks. "The big question in the industry at the moment is how long the blockade of the Strait of Hormuz will last, but for the time being there are no changes to our flight schedule," CEO Dorothea von Boxberg told journalists on Wednesday.
Brussels Airlines has hedged 80 per cent of its kerosene, meaning it has locked in prices for a set period and is therefore shielded from price spikes. According to the airline, the hedging strategy gives it a competitive edge, particularly over US carriers, which traditionally do not hedge or do so to a more limited extent.
Von Boxberg dismissed travellers' fears that flights could be cancelled due to fuel shortages. "There will always be a supply of fuel," she said. "In fact, due to the problems in the Middle East, we are now seeing new supplies coming in from other regions. We are in a stronger position in Brussels than in many other places, thanks to the NATO pipeline system."
Airlines under financial pressure
The ongoing crisis in the Middle East is weighing on the airline's finances this year, Brussels Airlines CFO Nina Öwerdieck confirmed. Due to the higher fuel prices, the airline's target of an 8 per cent profit margin will not be achievable this year. The airline nonetheless expects to turn a profit in 2026.
The airline also suffers from the repeated protests by Belgium's unions. Von Boxberg stated on Wednesday that the national protest in March cost the airline more than a million euros, and risks doing so again during next week's day of action. "It is demotivating and an additional burden in these times," she said. "We are not involved in the dispute, but we do foot the bill."
Its parent company Lufthansa Group, meanwhile, posted an operating loss (EBIT) of 612 million euros in the first quarter, which it attributes to rising kerosene prices. To offset the higher costs, the group is cancelling flights and raising ticket prices.
The conflict could also have an upside, Lufthansa says, as passengers are avoiding airports around the Persian Gulf and opting for alternative hubs operated by the group. Revenue rose by 8 per cent in the first quarter, and Lufthansa expects that its operating profit for 2026 will be at least 10 per cent higher than in 2025.
© BELGA PHOTO ERIC LALMAND
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