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German Airfares Rise Sharply in First Half of 2026

Rising jet-fuel costs from the Iran conflict plus shrinking airline capacity and expiring fuel hedges mean relief from a July tax cut will arrive only in the second half of 2026.

Overview

  • The Federal Statistical Office reported on Monday that ticket prices climbed 8.5% for international flights and 9.5% for domestic routes in the first half of 2026 while package holidays rose only modestly by about 3.0%.
  • News and industry analyses attribute the jump mainly to a kerosene supply shock after the Iran war and partial disruption of the Strait of Hormuz, which pushed jet-fuel spot prices sharply higher.
  • Airlines partially buffered the shock with fuel hedges but many of those contracts are now running off, exposing carriers to market fuel costs that industry sources say will be passed on to passengers.
  • Market studies from DLR and industry groups show airlines have cut routes and redeployed aircraft from Germany, with examples including Lufthansa/CityLine cancellations and Ryanair shifting its Berlin base, while high airport fees keep costs above many European peers.
  • For travelers the impact is uneven by destination and booking type, with the largest ticket rises for European and Middle America routes and greater pressure expected into winter if fuel volatility and capacity reductions persist.