Lufthansa eliminates 20,000 flights due to the closure of its short-haul subsidiary

BarcelonaThe German airline Lufthansa has reported that the closure of its short-haul airline Lufthansa CityLine will reduce the group's capacity by 1% and means the elimination of 20,000 flights, equivalent to about 40,000 metric tons of aviation fuel, a product whose price has doubled since the outbreak of the war in the Persian Gulf.

fears in Europe of a possible kerosene shortageRoute planning for the coming months is being revised taking into account the reduction in capacity and will be published at the end of April or beginning of May, according to the airline. This includes optimizations of the short-haul offering for the entire summer season. The company expects fuel supply to remain stable for the summer months, despite fears in Europe of a possible kerosene shortage for aircraft if the conflict between Iran and the United States persists over time. Lufthansa is implementing a series of measures, including the physical acquisition of fuel and price hedging.

CityLine Closure

The company announced last week the closure of CityLine within a measured package to mitigate the effects of the increase in kerosene prices, and on Saturday it retired the 27 aircraft with which the subsidiary operated. The German group has explained that these aircraft, of the Canadair CRJ model, are already nearing the end of their technical lifespan and have quite high operating costs. Lufthansa CityLine employees have been offered alternatives to continue their careers within the group.

This initial package foresees a reduction in the flight schedule on short, medium, and long-haul routes, as well as measures for the early modernization of the fleet. In a second phase, it will retire six long-haul aircraft by the end of summer. Therefore, the remaining four Airbus A340-600s will leave the fleet in October, thus forever ending the era of this type of aircraft at Lufthansa. Additionally, two Boeing 747-400s, whose definitive farewell is scheduled for next winter, will be grounded from October.

The third phase of this package of measures, during the coming winter season, will reduce the capacity of Lufthansa's main brand as part of the planned consolidation of short and medium-haul transit at the group's six hubs, which will mean ceasing operations with five aircraft. The group defends these measures by arguing that they "generate a disproportionate saving effect on fuel costs," as old and inefficient aircraft are being retired in advance, and at the same time, the uncovered portion of kerosene needs is being reduced.

As reported last week, for now, the German multinational has its fuel needs covered by 80%, well above the sector average, but the rest must be purchased at market prices. The objective of these measures is to reduce this percentage to 10%.