Lufthansa Group is permanently shutting down subsidiary Lufthansa CityLine, removing its 27 operational aircraft starting April 18, 2026, as urgent measures to combat surging fuel costs from the Strait of Hormuz disruptions.
This accelerates capacity cuts and fleet modernization to slash losses at the unprofitable regional carrier and reduce exposure to unhedged fuel prices, which spiked after Middle East supply losses.
Europe relies on 375,000 barrels of jet fuel daily from the Middle East, but US imports hit a record 200,000 barrels per day in April 2026, leaving a 175,000-barrel shortfall.
Lufthansa’s fuel is 80% hedged, but the unhedged 20% now faces steep market rates; these steps cut that portion by 10% via early retirement of inefficient planes.
Additional actions include retiring four Airbus A340-600s, grounding two Boeing 747-400s for winter, and trimming five short- and medium-haul aircraft from the core brand.
These moves align with reducing sub-fleets and reallocating nine Airbus A350s to Discover Airlines, prioritizing fuel efficiency amid risks of summer shortages warned by the International Energy Agency.
Recent strikes by CityLine cabin crew and ongoing labor disputes at Lufthansa hubs like Frankfurt and Munich compound operational pressures.