Lufthansa Group is immediately shutting down its loss-making subsidiary Lufthansa CityLine, permanently grounding its 27 aircraft starting April 18, 2026. The decision accelerates prior plans due to fuel prices more than doubling from the Iran war and ongoing labor strikes.
This targets the regional carrier’s short-haul Europe routes from Frankfurt and Munich hubs, aiming to slash unhedged fuel expenses that comprise 20% of needs despite 80% hedging.
CityLine’s removal reduces the group’s inefficient fleet, cutting the exposed fuel portion by 10% and generating disproportionate savings.
Additional measures include retiring the last four Airbus A340-600s next year, grounding two Boeing 747-400s for winter, and trimming Lufthansa Airlines’ short- and medium-haul by five aircraft.
These steps align with fleet modernization, including nine extra Airbus A350s for Discover Airlines, to minimize sub-fleet types and operational losses.
Affected employees face reassignment as Lufthansa navigates capacity reductions on long- and short-haul routes, amid industry-wide pressures from energy spikes and disputes.