Lufthansa cuts 20,000 summer flights to save jet fuel costs – What's next for European airlines

Dubai: Lufthansa Group has slashed 20,000 flights from its summer schedule in a bid to cut jet fuel costs as the Iran conflict pushes jet fuel prices sharply higher, the airline announced late Tuesday.

The move by the German aviation giant is now setting the tone for what could be a turbulent season for European airlines.

Lufthansa said the cuts, largely on short-haul routes, will save more than 40,000 metric tonnes of jet fuel, at a time when prices have more than doubled since the outbreak of the conflict.

The capacity reduction is modest — less than 1 per cent of total available seat kilometres (ASK) - a standard airline metric measuring how many seats are offered and how far they fly.

However, instead of chasing growth (more flights, more passengers), airlines like the Lufthansa Group are now focusing on making money per flight. The airline celebrates its 100th anniversary this year.

Despite fears of shortages, European officials insist there is no immediate lack of jet fuel.

European Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas said there is “no evidence of actual shortages”, even as supply chains remain under pressure due to disruptions around the Strait of Hormuz. But airlines are feeling the pinch elsewhere — in their balance sheets.

In an April 16 announcement, Till Streichert, Chief Financial Officer and CFO of Lufthansa Group, explained. “The goal is to focus our short- and medium-haul platforms more clearly and make them more competitive.”

He added that the measures were “unavoidable in light of sharply increased kerosene costs and geopolitical instability”.

Lufthansa is reshaping its network and fleet. It plans to remove loss-making short-haul routes across hubs in Frankfurt and Munich and to cut capacity via its regional arm, Lufthansa CityLine.

It is also retiring older, fuel-intensive aircraft such as the Airbus A340-600, grounding parts of its Boeing 747-400 fleet, and accelerating the deployment of newer Airbus A350 aircraft.

At the same time, it is shifting growth to more efficient hubs like Zurich, Vienna and Brussels. Passengers will still have access to long-haul connections, but via a more consolidated and cost-efficient network.

Lufthansa is not alone. Last week, KLM Royal Dutch Airlines said it had also begun adjusting its schedule, cutting around 80 European return flights — again, less than 1 per cent of its network — citing routes that are no longer financially viable due to rising fuel costs.

The airline has also extended cancellations to Middle East destinations such as Riyadh, Dammam and Dubai through mid-June, pointing to continued uncertainty in the region.

Passengers are being rebooked, and airlines are trying to minimise disruption — but the direction of travel is clear.

Air France has suspended all flights to Beirut, Dubai, Riyadh and Tel Aviv until May 3.

Meanwhile, British Airways has cut services across the region, including Dubai, Doha and Abu Dhabi, and will permanently drop its London–Jeddah route. When flights resume, schedules will be significantly reduced — London–Riyadh will fall to one daily service, while Dubai will see just one daily flight each way, down from three. Services to Doha and Tel Aviv will also be halved.

Industry bodies are increasingly cautious.

International Air Transport Association Director General Willie Walsh warned that Europe could begin to see flight cancellations due to fuel constraints by late May if supply pressures worsen.

The International Energy Agency has also cautioned that Europe may have only weeks of jet fuel reserves under current conditions.  

European transport ministers are exploring options to import jet fuel from alternative supplies such as the United States, Tzitzikostas told reporters on Tuesday.

“We are working on securing an alternative jet fuel supply for Europe, such as type A jet fuel produced in the United States. And if real supply issues arise, our emergency stocks must be put to the best use,” he added.

The European Commission also wants to use the crisis to accelerate the development of the sustainable aviation ​fuel (SAF) and synthetic fuels. “

For now, airlines are relying on: Hedging strategies (Lufthansa has about 80 per cent of fuel needs hedged), alternative supply routes, and network optimisation. But the remaining unhedged fuel — often the most expensive — is becoming a growing burden.