Lufthansa announced it will cut approximately 20,000 short-haul flights from its schedule through October, citing a significant increase in jet fuel prices that has rendered many routes unprofitable [1]. The German airline stated that these cuts are expected to save about 40,000 metric tons of jet fuel, with prices having doubled since the outbreak of the Iran conflict [1]. The company emphasized that the schedule adjustments are aimed at reducing the number of unprofitable short-haul flights across the Lufthansa Group network [1].
The surge in jet fuel costs is attributed to increased volatility in the energy market following the Iran war and disruptions to oil flow through the Strait of Hormuz due to the threat of Iranian attacks, which has impacted the availability of jet fuel [1]. This trend is not isolated to Lufthansa; other airlines are also adjusting their operations. Air Canada recently suspended select U.S.-bound routes, and Delta Air Lines has trimmed some summer routes, describing these changes as part of "normal planning" [1].
In response to rising costs, several major airlines—including JetBlue, United, Delta, and Southwest—have raised baggage fees in recent weeks [1]. According to Sean Cudahy, senior aviation reporter at The Points Guy, airfare increases are being seen across the board, affecting both full-service and budget carriers, as well as domestic and international flights [1]. Cudahy noted, "This is really just a classic case of companies passing on costs to their customers, and it’s a big cost at that" [1]. He further explained that jet fuel is typically airlines’ second-largest expense and warned that even if the Strait of Hormuz were to reopen, high fares would likely persist for months, and increased baggage fees are unlikely to decrease [1].
CONCLUSION
Lufthansa's decision to cut 20,000 flights highlights the severe impact of soaring jet fuel prices on the airline industry. With other major carriers also adjusting routes and raising fees, the market is experiencing significant cost pressures that are being passed on to consumers. Elevated fares and fees are expected to persist in the near term.