• Lufthansa is cutting capacity and phasing out its CityLine unit as rising fuel costs and strike disruptions intensify operational pressure, according to Euronews and company statements.
• The reductions, including long-haul aircraft, are expected to impact bellyhold cargo capacity and wider air freight flows.

Lufthansa is accelerating capacity reductions across its network as rising fuel costs and operational disruption place increasing pressure on the airline, with potential implications for air cargo capacity.

According to Euronews, the German carrier has faced mounting challenges from labour disputes, including five consecutive days of strikes by cabin crew and pilots. Combined with sharply rising fuel costs linked to geopolitical tensions, these disruptions have forced the airline to fast-track elements of its restructuring strategy.

In a separate statement, Lufthansa confirmed that its regional subsidiary CityLine will be phased out, with 27 aircraft to be removed from the flight programme. The airline is also reducing long-haul capacity by six intercontinental aircraft and plans further cuts across its short- and medium-haul network in the upcoming winter schedule.

The measures come as kerosene prices have more than doubled compared to pre-conflict levels, significantly increasing operating costs. Lufthansa said the changes will help reduce fuel consumption and improve efficiency, including lowering exposure to unhedged fuel purchases.

Till Streichert, Chief Financial Officer and CFO of Lufthansa Group, says: “The package for accelerated implementation of fleet and capacity measures is unavoidable in light of the sharply increased kerosene costs and geopolitical instability. The goal is to focus our short- and medium-haul platforms more clearly and make them more competitive. In this regard, we had already identified the prospective removal of CityLine from our program as part of our strategic development for some time, independently of the current geopolitical crisis.”

“The current crisis is now forcing us to implement this measure earlier. This is a painful step, particularly with regard to the colleagues at Lufthansa CityLine. It is therefore all the more important now to find continued employment opportunities within the Group.”

With the implementation of the first package of measures, the Group is accelerating its intended consolidation of short- and medium-haul traffic. The early retirement of older aircraft types also corresponds to the strategy of reducing the number of different sub-fleets as quickly as possible. The planned allocation of nine additional Airbus A350s to Discover Airlines is taking place within the framework of medium-term fleet planning.

To further reduce administrative costs, new savings targets for staff recruitment, internal events, and external consulting services have been decided. They support the existing reduction target of 4,000 administrative positions group-wide by 2030.

Against the background of the scheduled end of flight operations of the Canadair jets at Lufthansa CityLine by the end of the year at the latest, and a possible termination of all flight operations, offers for follow-up employment have already been made to all employee groups in the past:

• Ground staff have already received employment at the newly founded Lufthansa Aviation GmbH
• Cockpit and cabin crew were already offered transfer options at the turn of 2024/2025, which provided for employment at Lufthansa City Airlines with multi-year comparable compensation conditions to Lufthansa CityLine. According to this offer, any differences in working conditions were to be offset by a compensation payment.
• The goal remains to enable crews of Lufthansa CityLine to have options for a professional perspective within the Lufthansa Group.

“In addition, discussions will be initiated with the employee representatives of Lufthansa CityLine GmbH regarding a reconciliation of interests and social plan,” mentioned in a statement.

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