Lufthansa cancels 20,000 flights as jet fuel prices double
What's the story
Deutsche Lufthansa AG, Europe's largest airline group, has announced plans to cancel 20,000 short-haul flights from its European summer schedule. The decision comes as a response to the doubling of jet fuel prices since the onset of the Iran war. The cuts will account for about 1% of available seat-kilometers and are expected to save some 40,000 tons of jet fuel.
Operational adjustments
Flight cancellations follow regional unit closure
The announcement of flight cancellations comes just days after Lufthansa revealed the closure of its Cityline regional unit and the grounding of 27 older, fuel-inefficient aircraft. The airline has been making some of the most drastic moves among global carriers since the conflict began, while also dealing with strikes by pilots and cabin crew members.
Industry effects
Global airline capacity reduced by rising fuel costs
The first batch of 120 flight cancellations was executed on Tuesday, effective until the end of May. Further cuts for the remainder of the summer scheduling season are expected to be announced by late April or early May. Globally, airline capacity for May has been reduced by some 3% points, with nearly all of the world's top 20 airlines cutting flights due to rising fuel costs.
Profitability plan
Lufthansa to cut 4,000 administrative jobs
In a bid to improve profitability, Lufthansa has also announced plans to cut 4,000 administrative jobs by 2030. The airline intends to shift more short-haul flights to lower-cost units such as City Airlines and Discover. These units have crew costs that are up to 40% lower than those at the flagship airline.