Lufthansa will cut around 20,000 short-haul flights from its European summer schedule through October, saying soaring jet fuel prices have made many routes unprofitable, as a growing fuel crisis squeezes airlines across the continent. Jet fuel prices have doubled since the start of the Iran war, driven by disruptions to Middle East supply chains. The Middle East previously accounted for 75% of Europe's net jet fuel imports, the bulk of it transiting through the Strait of Hormuz, which Iran has effectively closed in response to U.S. and Israeli strikes. Lufthansa said Tuesday the cuts would sav

Lufthansa will cut around 20,000 short-haul flights from its European summer schedule through October, saying soaring jet fuel prices have made many routes unprofitable, as a growing fuel crisis squeezes airlines across the continent.

Jet fuel prices have doubled since the start of the Iran war, driven by disruptions to Middle East supply chains. The Middle East previously accounted for 75% of Europe's net jet fuel imports, the bulk of it transiting through the Strait of Hormuz, which Iran has effectively closed in response to U.S. and Israeli strikes.

Lufthansa said Tuesday the cuts would save roughly 40,000 metric tons of fuel. The majority stem from the accelerated closure of its CityLine regional subsidiary, announced last week alongside the retirement of 27 aircraft.

The airline said it would temporarily stop serving Heringsdorf, Cork, Gdańsk, Ljubljana, Rijeka, Sibiu, Stuttgart, Trondheim, Tivat, and Wrocław, redirecting affected passengers to flights operated by group carriers SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways where possible. Some cuts could become permanent, the airline said, adding it would release a fuller schedule review later in April.

Scandinavian carrier SAS has cancelled 1,000 flights in April, while KLM said it would cut 160 flights in May, approximately 1% of its European routes. Ryanair chief executive Michael O'Leary said the carrier would look to cancel flights and reduce capacity over the summer if the fuel shortage continued.

IEA Executive Director Fatih Birol warned last week that Europe has roughly six weeks of jet fuel supplies remaining, describing the Hormuz blockade as the cause of "the largest energy crisis we have ever faced." The European Commission acknowledged the market was "tight" but said no shortages had yet materialized, and announced it would establish a fuel observatory to monitor EU production, imports, exports, and stock levels.

Lufthansa said its fuel supply was secured for coming weeks and that passengers would retain access to its long-haul network. "Due to the increase in jet fuel prices, this will be achieved significantly more efficiently than before," the airline said.

Source:CNBC

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