Lufthansa Group has announced the cancellation of 20,000 flights over the next six months in a bid to save 40,000 metric tonnes of jet fuel, throwing summer holiday plans into uncertainty. The decision comes as aviation fuel prices have doubled amid the ongoing war in Iran, which has disrupted Middle East oil supplies.
Unprofitable Short-Haul Flights Axed
The German airline group stated that it has cut "unprofitable" short-haul flights operated by its regional subsidiary Lufthansa CityLine. This move will reduce the entire group's capacity by one per cent in available seat kilometres this summer.
Simon Calder, a travel expert and regular on ITV's This Morning, explained: "Aviation is a low-margin industry. When the price of fuel doubles, flights which were only marginally profitable can become heavily loss-making."
Impact on UK Passengers
Calder highlighted the potential impact on UK travellers: "On a typical day, Lufthansa has two flights a day from Glasgow and three from Edinburgh to its main hub, Frankfurt. One or both of the Glasgow flights could be cancelled and passengers moved to Edinburgh."
He added: "Similarly, Lufthansa flies early each evening from Birmingham to Frankfurt. Those passengers could be offered the choice of Manchester or London Heathrow departures at much the same time. Annoying, but not the end of your holiday."
Strategic Decision Accelerated by Crisis
Till Streichert, Chief Financial Officer of Lufthansa Group, said: "We had already identified the prospective removal of CityLine from our program as part of our strategic development for some time, independently of the current geopolitical crisis. The current crisis is now forcing us to implement this measure earlier. This is a painful step, particularly with regard to the colleagues at Lufthansa CityLine."
Broader Fuel Supply Concerns
Last week, Fatih Birol, head of the International Energy Agency, warned that Europe only has around six weeks of jet fuel supply left in what he fears could be "the largest energy crisis we have ever faced." Most airlines are grappling with soaring costs as Middle East oil supplies remain largely cut off due to the blocking of the Strait of Hormuz. Consumers are also feeling the pinch, with ticket prices starting to show significant rises.
