European carriers have warned that the rising cost of jet fuel resulting from the war on Iran will weigh on their outlooks, with ticket prices set to rise next year as hedges expire, Reuters reported.
Bernstein analyst Alex Irving said the more resilient results show Lufthansa's turnaround programme may be starting to bear fruit despite the challenging fuel environment.
Lufthansa shares were up 1.5% soon after markets opened.
"With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros," Lufthansa CEO Carsten Spohr said in a statement.
The German airline group said its total fuel costs rose by more than €400 million ($448 million) compared to last year.
Lufthansa trimmed its operating profit forecast for the 2026 financial year to between €1.7 billion and €2 billion, compared to an earlier €1.7 billion to €2.2 billion range.
It also confirmed capacity growth for the year was expected to be flat as it posted a €1.4 billion operating profit for its third quarter, which is usually the most profitable for European airlines because it includes the peak summer season.
That compared to a company-compiled analyst projection of €1.37 billion.
Chief Financial Officer Till Streichert said the full-year operating profit would depend on demand, fuel costs and the performance of Lufthansa Cargo in the fourth quarter.
The airline group said it saw considerable demand in its premium segment, reflecting a trend that major network carriers have flagged. It added that traffic to Asia and North America was also strong, helping to drive resilience.