SunExpress trims winter seats and signals fare increases as fuel costs bite

How SunExpress is adjusting

SunExpress, the joint venture of Deutsche Lufthansa AG and Turkish Airlines, is tightening winter supply to soften the hit from pricier jet fuel tied to the Middle East conflict. The airline plans about 4.5 million seats this winter versus roughly 5 million previously by scaling back daily frequencies and cutting some Turkish domestic flights. Its fleet stands at 86 Boeing single-aisle aircraft, and it expects eleven 737 Max 8 deliveries next year.

Fuel and pricing outlook

Higher oil is pushing costs up across the industry, and SunExpress is feeling it. According to Schnabel, after hedging, the airline's fuel costs were up by about €200 million this year, with a further rise anticipated next year. "Of course, you have to forward some of it to the market," he said, adding he expects fares to be up to 10% higher next year even as the company works to keep bundled holiday prices stable. Schnabel came on board in February following over 20 years at Lufthansa, replacing Max Kownatzki, who now heads Eurowings.

A budget carrier leans premium

Budget brand does not mean bare bones. With demand for upscale leisure strong, SunExpress is discussing a premium bundle that would let customers reserve an entire row with the middle seat left empty, plus priority boarding and food in a single buy. That nudge upmarket tracks a broader shift as airlines globally slim winter schedules, trim earnings goals and chase savings to offset fuel. CEOs at Ryanair and Lufthansa also flagged that tickets could be significantly pricier in 2027.

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The broader setup for investors

Capacity cuts plus pricier fuel usually point to firmer yields - industry speak for revenue per seat - if demand holds. Watch the mix shift too, as premium leisure upsells can cushion margin pressure even when base fares are volatile. If more carriers mirror SunExpress on capacity and pricing, next year's travel stocks may trade more on oil and execution than on volume growth.

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