Germany’s flag carrier Deutsche Lufthansa AG will cancel around 20,000 short-haul flights from its European summer schedule as soaring jet fuel prices squeeze airline profitability amid the Iran conflict.

The airline said the reductions will account for nearly 1 percent of available seat-kilometres and help save nearly 40,000 tonnes of jet fuel. Fuel costs have reportedly doubled since the start of the Iran war, prompting one of the sharpest operational responses by a major global carrier.

The first batch of around 120 cancellations came into effect on Tuesday and will run through the end of May. The company expects to announce wider schedule cuts for the rest of the summer season by late April or early May.

Lufthansa Takes Aggressive Cost Steps

The latest move follows a series of cost-control measures by Lufthansa. Last week, the group announced the shutdown of its regional unit Lufthansa CityLine and grounded 27 older aircraft known for higher fuel consumption.

Lufthansa has been among the most aggressive global airlines in reacting to the conflict-driven jump in energy costs. The company is also dealing with labour unrest, including strikes by pilots and cabin crew.

The airline, in its statement, emphasised that the optimisation exercise is aimed at maintaining efficiency amid “short-term changes and market fluctuations," with flexibility to cancel routes or redeploy aircraft depending on demand patterns and cost dynamics.

Global Airlines Also Cutting Capacity

The pressure also affects airlines other than Lufthansa. According to aviation analytics firm Cirium Ltd, global airline capacity for May has already been reduced by around 3 percentage points, with nearly all of the world’s 20 biggest airlines trimming flights.

Industry forecasts have also weakened. Earlier growth expectations of 4 per cent to 6 per cent for the year are now being reassessed, with some scenarios pointing to a potential 3 per cent decline if disruptions continue.

Profitability Push Continues

Lufthansa is simultaneously pursuing a broader restructuring plan aimed at lifting margins. The airline plans to cut 4,000 administrative jobs by 2030 and shift more short-haul operations to lower-cost subsidiaries such as City Airlines and Discover Airlines, where crew costs are significantly lower than at the mainline carrier.

The latest cancellations underline how sharply airlines are responding as higher fuel prices and geopolitical uncertainty reshape travel economics.

Source: News 18