Lufthansa and Ryanair Face Crisis Paradox Amid Iran Conflict

Frankfurt – The Iran war is impacting global aviation, prompting Lufthansa to develop contingency plans. CEO Carsten Spohr has tasked teams with simulating two escalation scenarios to ensure measured responses and avoid overreactions. The crisis unfolds on multiple levels for airlines.

Reports indicate fuel shortages emerging in Asia, with airports in Singapore, Bangkok, and parts of India rejecting additional Lufthansa flight requests and even turning away scheduled ones. Lufthansa cited warnings from early Asian airports about scarce kerosene supplies, as stated by Spohr at a recent employee event according to WirtschaftsWoche.

The baseline scenario of the multi-stage crisis plan is already active. Further escalations could see European fuel supply gaps. Potential measures include cutting unprofitable routes, early retirement of older aircraft like the Airbus A340-600 and Boeing 747-400 fleets, and reductions in feeder networks.

In one scenario, 20 aircraft would be grounded, cutting 2.5 percent of total seat capacity. A worse case doubles that to 40 planes and five percent capacity loss. Spohr has warned staff of possible groundings and short-time work, with higher fares likely for passengers.

Ryanair faces similar pressures in this shared crisis environment, though specific measures remain undisclosed in current reports.