German Airline Giant Lufthansa Cuts 20,000 Flights Due to High Jet Fuel Prices
Jakarta, CNBC Indonesia - The German airline Lufthansa will cut around 20,000 short-haul flights in Europe during this summer season. This decision has been taken because the surge in fuel prices (avtur) has rendered many routes no longer profitable.
The rise in avtur prices occurred after the conflict between the United States, Israel, and Iran triggered disruptions in energy production and distribution in the Middle East. This situation has a direct impact on airline operating costs.
Citing the BBC, several other airlines such as Air France-KLM and Delta Air Lines are also beginning to reduce flight schedules, while others are raising ticket prices to cover additional costs. Analysts predict that passengers will face higher ticket prices and potential further flight cancellations if the conflict persists.
Lufthansa states that this flight reduction is estimated to save around 40,000 metric tons of jet fuel. The majority of the efficiency comes from the closure of CityLine services.
The airline is also temporarily suspending a number of routes to cities such as Heringsdorf, Cork, Gdańsk, Ljubljana, Rijeka, Sibiu, Stuttgart, Trondheim, Tivat, and Wrocław.
For affected passengers, the company will offer refunds or rebookings to other flights via airlines in its group, such as SWISS International Air Lines, Austrian Airlines, Brussels Airlines, and ITA Airways.
Some route cuts may even become permanent. Lufthansa is currently reviewing its entire European flight network and will announce updates soon.
Meanwhile, concerns about fuel shortages have also emerged. The International Energy Agency has warned that Europe could face jet fuel shortages in the coming weeks, although the UK government and airlines state they have not yet seen significant disruptions.
The European Union plans to establish a fuel monitoring centre to track production, imports, exports, and stocks of transport energy to anticipate potential crises. Amid cost pressures, Lufthansa emphasises that it will maintain access to its global flight network, particularly long-haul routes, albeit with more efficient operations.
“However, due to the rise in jet fuel prices, this will be achieved far more efficiently than before,” said Lufthansa.
Previously, the company also accelerated the closure of its CityLine unit by retiring 27 aircraft. This was due to the surge in fuel prices and additional pressure from labour conflicts.