Lufthansa parent company cancels 20K flights as war spikes fuel costs

Key Points:

• Lufthansa Group plans to cut 20,000 short-haul flights through October, mainly from hubs in Frankfurt and Munich, to save about 40,000 metric tons of jet fuel amid rising fuel costs driven by the Iran war.
• The company has already shut down its regional subsidiary CityLine and is consolidating its European network, affecting airlines including Austrian Airlines, Brussels Airlines, SWISS, and ITA Airways.
• Jet fuel prices have more than doubled since late February due to conflict near the Strait of Hormuz, causing airlines worldwide to reduce flights, increase fees, and delay expansion plans.
• The International Energy Agency warns Europe has only about six weeks of jet fuel left, with potential shortages leading to further route cuts, while the EU estimates the war costs Europe around €500 million daily and expects prolonged energy price impacts.
• Major global airlines including Delta, United, American, and British Airways are canceling flights and revising financial forecasts downward due to soaring fuel expenses, with some carriers cutting planned seat capacity and reducing earnings outlooks.