In brief
In response to soaring fuel prices, Lufthansa has decided to cut 20,000 short-haul flights this summer, attributing the decision to the unprofitability of many routes. The increase in jet fuel costs, which have doubled since the outset of the US-Israel war with Iran, parallels trends seen in other airlines that are also adjusting flight schedules and ticket prices. Analysts forecast further price hikes and flight cancellations as supply concerns escalate amidst the ongoing conflict.
German airline Lufthansa will cut 20,000 short-haul flights over the summer, saying soaring fuel prices have made many journeys unprofitable for the firm.
Jet fuel has doubled in price since the start of the US-Israel war with Iran as the conflict has slowed its production and transportation across the Middle East.
Several airlines, including KLM-France and Delta, have also temporarily cut some flights while others have raised ticket prices as they pass on expenses to customers.
Analysts have warned that travellers should expect further ticket price rises and more cancelled flights as the conflict continues.
The Gulf is a major source of aviation fuel, accounting for about 50% of Europe's imports. The bulk of it comes through the Strait of Hormuz, which Iran has effectively closed in response to US and Israeli attacks.
The increase in jet fuel prices reflects the role Middle Eastern refineries play in supplies. The Al-Zour refinery in Kuwait alone provides roughly 10% of Europe's jet fuel imports, according to Energy Intelligence.
The International Energy Agency warned last week that Europe could run out of jet fuel in weeks, though the UK government and airlines say they are not seeing a disruption in supply.
Lufthansa said on Tuesday it was cutting down its European network, but that passengers will continue to have access to the global route network, particularly long-haul connections. However, due to the increase in jet fuel prices, this will be achieved significantly more efficiently than before, it stressed.
The company stated this would save approximately 40,000 metric tons of jet fuel. This announcement follows the firm’s decision to expedite the permanent closure of its European flight offering CityLine and retire the programme's 27 aircraft, partly due to "significantly increased kerosene prices" and "additional burdens from labor disputes".
The first 120 of these flight cuts were implemented on Tuesday, affecting routes including those from Frankfurt to Poland and Norway.
