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Lufthansa shuts CityLine subsidiary, cuts fleet amid fuel crisis

Economy & businessEconomy
Key Points
  • Lufthansa is shutting down its CityLine subsidiary and removing 27 aircraft from service.
  • The airline is implementing broader cost-cutting measures, including route reductions and fleet cuts.
  • The restructuring is driven by soaring fuel prices and ongoing labor strikes.

Lufthansa will shut down its CityLine regional subsidiary and permanently remove the 27 operational aircraft of Lufthansa CityLine from the flight programme starting the day after Thursday. The subsidiary has approximately 2,000 employees, and Lufthansa has offered continued employment in other subsidiaries to CityLine employees. Services on long-haul and short-haul routes across the rest of Lufthansa's network will be reduced after the summer to cut costs, with long-haul capacity reduced by a total of six intercontinental aircraft at the end of the summer flight schedule.

In the winter 2026/27 schedule, Lufthansa plans further cuts, removing five aircraft from the Lufthansa fleet across six destinations. This restructuring comes amid a sharp rise in kerosene prices, which have more than doubled since the outbreak of the Middle East war. According to the International Energy Agency's Executive Director Fatih Birol, Europe has maybe six weeks or so of jet fuel left, and he warned of possible flight cancellations soon if oil supplies remain disrupted by the Iran war.

Europe has maybe six weeks or so of jet fuel left.

Fatih Birol, Executive Director of the International Energy Agency

Lufthansa has faced regular strike actions, including five consecutive days of walkouts this week by cabin crew and pilots. 5%. The exact financial impact of the CityLine shutdown on Lufthansa's overall losses remains unknown, as does how the reduction in services will affect passenger ticket prices and availability.

Possible flight cancellations soon if oil supplies remain disrupted by the Iran war.

Fatih Birol, Executive Director of the International Energy Agency
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Lufthansa shuts CityLine subsidiary, cuts fleet amid fuel crisis | Reed News