Jakarta, CNBC Indonesia - German airline Lufthansa is cutting around\n20,000 short-haul flights until October 2026. This step is being taken\namid a surge in jet fuel prices due to the Iran war, which has raised\nfears of global energy supply disruptions.<\/p>\n
The Lufthansa Group states that the route reductions, particularly\nfrom its main hubs in Frankfurt and Munich, aim to cut costs while\nsaving around 40,000 metric tonnes of jet fuel.<\/p>\n
In addition, the company closed its regional subsidiary CityLine last\nweek as part of efficiency measures. The consolidation of the European\nnetwork also involves several airlines under the group, such as\nLufthansa Airlines, Austrian Airlines, Brussels Airlines, SWISS, and ITA\nAirways, including operations at hubs in Brussels, Rome, Vienna, and\nZurich.<\/p>\n
The surge in fuel prices is the main pressure on the aviation\nindustry. Since late February, global jet fuel prices have jumped from\naround US$99 per barrel (Rp1.68 million) to US$209 per barrel (Rp3.55\nmillion). This sharp rise is triggered by conflict around the Strait of\nHormuz, a strategic route through which about one-fifth of the world\u2019s\noil supply passes.<\/p>\n
This situation is beginning to affect passengers, with fewer flight\noptions and higher fares, especially ahead of the summer holiday season.\nSeveral airlines are also raising additional fees such as baggage and\nfuel surcharges.<\/p>\n
The head of the International Energy Agency (IEA) has warned that\ncurrent jet fuel stocks in Europe are only sufficient for about six\nweeks. If supplies do not improve, airlines are expected to continue\ncutting routes.<\/p>\n
European Union Energy Commissioner Dan J\u00f8rgensen emphasised that the\nimpact of this conflict is not temporary. \u201cThis is not a short-term and\nminor price increase,\u201d he said, as quoted by The Associated Press on\nThursday (23\/4\/2026).<\/p>\n
He also revealed that the war is burdening Europe with around 500\nmillion euros per day, equivalent to US$600 million or approximately\nRp10.2 trillion. \u201cEven in the best-case scenario, the situation is still\nbad,\u201d he added.<\/p>\n
J\u00f8rgensen stated that the European Union government is \u201cvery\nconcerned\u201d about the potential jet fuel shortage. Although various\nmeasures have been taken, Europe is still considered to be in a\ndefensive position facing this energy crisis.<\/p>\n
On the other hand, Lufthansa assures that its fuel supply is still\nsecure for the next few weeks. The company is also taking various steps\nto maintain supply stability during the summer, including direct fuel\nprocurement.<\/p>\n
Based on Cirium data, nearly all of the world\u2019s 20 largest airlines\nare also cutting flight schedules in May. Airlines such as Delta Air\nLines, United Airlines, American Airlines, Air Canada, Emirates, Qatar\nAirways, Air China, British Airways, and Air France-KLM are making\nsimilar adjustments.<\/p>\n
Other airlines are also taking efficiency measures. Edelweiss Air has\nstopped routes to Denver and Seattle, and reduced flights to Las Vegas.\nAir New Zealand has even cut around 4% of its flight schedules in May\nand June.<\/p>\n
In the United States, Delta Air Lines has cancelled plans to add\ncapacity in June, resulting in available seats about 3.5% lower than the\ninitial target.<\/p>\n
Meanwhile, fuel cost pressures are also hitting airlines\u2019 financial\nprojections. United Airlines has cut its annual profit estimate to\nUS$7-US$11 per share, down from the previous projection of US$12-US$14\nper share.<\/p>\n
This situation underscores that the global aviation industry is\nfacing heavy pressure, with energy price uncertainties expected to\npersist in the long term.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jet-fuel-prices-soar-this-airline-cuts-20-000-schedules-and-closes-subsidiary-1776916404", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }