Lufthansa Group announced on Tuesday that it will cut 20,000 short-haul flights through October, citing the impact of the Iran war, which has driven up oil prices and raised concerns about jet fuel shortages in some countries [1]. The cancellations will primarily affect less profitable routes at Lufthansa's hub airports in Frankfurt and Munich, and are expected to save approximately 40,000 metric tons of jet fuel [1]. This move follows the company's recent shutdown of its regional subsidiary, CityLine, as part of a broader cost-cutting and consolidation strategy involving Lufthansa Airlines, Austrian Airlines, Brussels Airlines, SWISS, ITA Airways, and their respective hubs in Brussels, Rome, Vienna, and Zurich [1].
The price of jet fuel has more than doubled in some markets since late February, when the war began with U.S. and Israeli strikes on Iran, with global jet fuel prices rising from about $99 per barrel at the end of February to as high as $209 per barrel at the beginning of April [1]. The fighting around the Strait of Hormuz, a critical passage for a fifth of the world's oil, has disrupted fuel prices and supplies globally [1]. The head of the International Energy Agency estimated on April 16 that Europe had about six weeks' worth of jet fuel remaining, warning that airlines would need to cut routes without additional supply [1].
Lufthansa stated it has secured enough jet fuel for the coming weeks and is taking various measures to maintain fuel supply stability for the summer, including the physical procurement of jet fuel [1]. The airline is not alone in scaling back operations; according to aviation analytics firm Cirium, all but one of the world’s 20 largest airlines have canceled scheduled May flights across all major regions [1]. Other carriers making similar adjustments include Delta Air Lines, United Airlines, American Airlines, Air Canada, Emirates, Qatar Airways, Air China, British Airways, Air France-KLM, and Edelweiss Air, which has dropped service to Denver and Seattle and reduced flights to Las Vegas [1]. Air New Zealand is also consolidating about 4% of its schedule in May and June, citing jet fuel prices that are more than double their usual levels [1].
For travelers, these developments are resulting in fewer flight options and higher fees and fares heading into the peak summer season, with many airlines raising checked bag fees or adding fuel surcharges [1].
CONCLUSION
Lufthansa's decision to cut 20,000 flights highlights the severe impact of the Iran war on global jet fuel prices and airline operations. With fuel costs more than doubling and supply concerns mounting, airlines worldwide are reducing schedules and increasing fares. The market faces significant disruption as carriers implement cost-saving measures and travelers encounter higher prices and fewer options.