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Lufthansa Accelerates Cost Cuts, Closing Subsidiary, as Fuel Prices Surge
The airline is accelerating the CityLine fleet phaseout and trimming winter capacity as labor disputes and kerosene prices push costs higher.
- On Thursday, Germany's national carrier Lufthansa announced it will permanently remove 27 CityLine aircraft from its flight programme starting Saturday, accelerating savings plans amid surging fuel costs and labor strikes.
- Significantly increased kerosene prices, which have more than doubled since the Iran war began, prompted the decision, as the airline faces mounting pressure from ongoing labor disputes and waves of staff walkouts.
- Till Streichert, the airline's chief financial officer, called the move a "painful step," noting that the shutdown was not expected so soon, despite original plans to close the subsidiary by 2028.
- Gerald Wissel, an aviation expert at Airborne Consulting, said removing older aircraft "makes sense... as they consume a great deal of fuel," reducing overall fuel consumption and fleet capacity.
- Lufthansa has already established a new subsidiary, City Airlines, to serve similar routes, while planning to withdraw four older long-haul aircraft from its core fleet at summer's end.
63 Articles
63 Articles
Lufthansa, Europe's first air transport group, announced on Thursday 16 April a reduction in its capacity, including the cessation of the activity of its regional subsidiary CityLine. The German group claims to be burdened by the rising costs of kerosene, caused by the war in the Middle East, and the impact of strikes.
The German group said that the measures are inevitable due to the increase in fuel prices caused by the blockade of the Strait of Ormuz
Due to high fuel costs and the burden of strikes, Lufthansa will stop operating the deficient subsidiary earlier than planned. Trade unionists speak of "open war."
RECIT - The German Air Transport Group will close its regional subsidiary, CityLine, and even reduce its long-haul operations. The result of strikes and the crashing of kerosene prices.
Lufthansa will cease operating its subsidiary Cityline earlier than planned.
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