The German airline group, which includes Lufthansa along with other European carriers, announced plans on Tuesday to cancel 20,000 short-haul flights through October. This decision comes amid rising oil prices attributed to the ongoing conflict in Iran and concerns over jet fuel shortages in certain regions.
By dropping less profitable routes—primarily at its main hubs in Frankfurt and Munich—the Lufthansa Group aims to save around 40,000 tonnes of jet fuel.
Last week, the airline also shuttered its regional subsidiary, CityLine, as part of its cost-cutting efforts. The intended realignment within the European network involves not just Lufthansa but also Austrian Airlines, Brussels Airlines, SWISS Airlines, and ITA Airlines, with operations centered in hubs like Brussels, Rome, Vienna, and Zurich.
Since February, jet fuel prices have skyrocketed in various markets, especially following the escalation of hostilities between the U.S. and Israel, which began with attacks on Iran. Airlines often find themselves particularly exposed to fluctuations in fuel prices, as jet fuel constitutes a significant portion of their operating expenses.
This volatile situation has already led to a reduction in flight options on certain routes, as well as increased fees and higher fares, especially during the busy summer season. Many airlines have also instituted additional fees for checked baggage or imposed fuel surcharges.
The conflict near the Strait of Hormuz has disrupted global fuel supplies, impacting prices and availability.
An official from the International Energy Agency noted on April 16 that Europe may only have about six weeks’ worth of jet fuel remaining. If supplies dwindle further, airlines will likely be forced to eliminate routes. The European Union’s energy chief has cautioned that the ongoing crisis could result in price fluctuations lasting for months or even years.
“This isn’t just a minor, short-term price spike,” EU Energy Commissioner Dan Jorgensen remarked on Wednesday, adding that the war is costing Europe approximately 500 million euros daily.
Even under ideal circumstances, Jorgensen indicated that the situation remains dire. He conveyed that EU governments were “very concerned” regarding potential jet fuel shortages, asserting that the European Commission is doing what it can, but that Europe is largely on the defensive.
In the meantime, Lufthansa claims it has sufficient jet fuel to last “for the coming weeks” and is actively seeking multiple strategies to secure stable fuel supplies throughout the summer.
It appears that nearly all of the world’s top 20 airlines have canceled scheduled May flights across major regions, reports from aviation analytics firm Cirium reveal. Along with Lufthansa, this includes Delta Air Lines, United Airlines, American Airlines, Air Canada, Emirates, Qatar Airways, Air China, British Airways, and Air France-KLM.
Swiss-based Edelweiss Airlines announced it would cancel flights to Denver and Seattle this summer, while reducing service to Las Vegas until early fall.
Air New Zealand, too, plans to consolidate about 4% of its schedule for May and June, highlighting that “like airlines globally, jet fuel prices have surged to over double what is normal.”
Prices for global jet fuel have increased from around $99 per barrel in late February to approximately $209 per barrel by early April.
In addition to cutting flights, other airlines are postponing plans for adding more seats or routes in an effort to manage costs. Delta Air Lines recently withdrew its plans for additional flights and seats in June, forecasting about 3.5% fewer seats than initially expected.
As U.S. airlines release their first-quarter earnings reports, there’s growing uncertainty regarding future fuel costs. Several airlines have downgraded their full-year forecasts or are opting not to update them. On Wednesday, Southwest Airlines maintained its outlook for 2026 but warned that second-quarter profits would likely fall short of Wall Street’s expectations due to rising fuel costs. United Airlines also revised its anticipated full-year earnings per share downward, estimating it will be between $7 and $11, a drop from an earlier projection of $12 to $14.
