Lufthansa Group is cutting 20,000 short-haul flights through October 2026, saving about 40,000 metric tons of jet fuel whose price has doubled due to the Iran war. The move reduces summer capacity by one percent in available seat kilometers, targeting unprofitable routes from Frankfurt and Munich.
Initial cancellations of 120 daily flights started yesterday and run through May, with affected passengers notified. This follows the sudden shutdown of Lufthansa CityLine, grounding 27 aircraft amid soaring fuel costs and strikes.
Global jet fuel prices hit $209 per barrel last week, up from $99 at the war’s start in February, according to IATA data. The conflict’s blockade of the Strait of Hormuz disrupts oil shipments, with prices up 105% year-over-year worldwide and 83% in North America.
Jet fuel, airlines’ second-largest expense after labor at around 30% of costs, forces capacity adjustments across carriers. U.S. airlines like United, Delta, Southwest, and Alaska have raised bag fees $10-50 and cut flights, while Air Canada suspends JFK service June-October.
European peers including KLM, Ryanair, Scandinavian, Air France, Thai Airways, and Singapore Airlines are also reducing summer schedules. Lufthansa accelerates fleet strategy by retiring four A340-600s and grounding two B747-400s by October, plus five more short-haul aircraft in winter 2026/27.
These cuts preserve operational viability as demand softens from higher fares, up 10-20% on average, amid persistent supply disruptions. IEA warns Europe holds just six weeks of jet fuel stocks, risking shortages.