The German airline will move to around 20,000 for short-haul flights in the summer, as, as the company reports, fuel prices have made many routes “unprofitable”.
The price of jet fuel has doubled since the start of the US-Israeli war with Iran, as the conflict has affected its production and transport from the Middle East.
New price increases are coming to airlines
Several airlines, including KLM–Air France and Delta, have also temporarily cut some flights, while others have raised ticket prices, passing the increased cost on to passengers.
Analysts warn that travelers should expect further increases in ticket prices and more flight cancellations as the conflict continues. The Persian Gulf is an important source of jet fuel and accounts for around 50% of Europe’s imports. Most of this fuel passes through the Strait of Hormuz, which Iran has effectively closed in response to US and Israeli attacks.
The increase in jet fuel prices reflects the role Middle Eastern refiners play in the global supply chain. The Al-Zour refinery in Kuwait alone supplies about 10% of Europe’s jet fuel imports, according to Energy Intelligence.
Fear of shortages brings fewer flights to Europe
The International Energy Agency warned last week that Europe could face jet fuel shortages within weeks, although the UK government and airlines say they are not yet seeing supply disruptions.
Lufthansa said on Tuesday it was reducing its European network but that passengers “will continue to have access to the global route network, particularly on transatlantic flights”. As the company argued: “However, due to the increase in jet fuel prices, this will be achieved much more efficiently than before.”
The company said this will lead to savings of around 40,000 metric tonnes of fuel.
Tuesday’s announcement follows the company’s announcement last week that it is accelerating the permanent closure of CityLine’s European subsidiary.
In that announcement it also said it was withdrawing the company’s 27-plane program, in part because of “significantly increased kerosene prices” but also because of “additional burdens from labor disputes.”
Lufthansa said the first 120 of those flight cuts were implemented on Tuesday. Affected routes include services from Frankfurt to Poland and Norway.
