Lufthansa is set to cut approximately 20,000 short-haul flights through October, responding to a significant spike in jet fuel prices. The airline attributes this increase to the ongoing Iran war, which has rendered many routes unprofitable amidst rising operational costs.
The German carrier announced the cuts on Tuesday, estimating that the adjustments will save about 40,000 metric tons of jet fuel. Fuel prices have reportedly doubled since the outbreak of the Iran war, placing substantial pressure on the aviation industry.
“In total, 20,000 short-haul flights will be removed from the schedule through October, equivalent to approximately 40,000 metric tons of jet fuel, the price of which has doubled since the outbreak of the Iran conflict,” the company stated. “The schedule adjustments reduce the number of unprofitable short-haul flights across the Lufthansa Group network.”
This move reflects a broader trend in the airline industry, where carriers are adjusting operations to mitigate the impact of surging fuel costs. The energy market has experienced increased volatility since the Iran war began, with the flow of oil through the Strait of Hormuz severely constrained by the threat of attacks, affecting the availability of jet fuel.
Other airlines are adopting similar strategies. Air Canada recently announced the suspension of select U.S.-bound routes due to climbing jet fuel prices. Delta Air Lines has also trimmed some summer routes as part of what they describe as “normal planning.”
Several major airlines, including JetBlue, United, Delta, and Southwest, have recently increased baggage fees, passing on the rising costs to consumers.
Sean Cudahy, senior aviation reporter at The Points Guy, noted, “We’re seeing airfare increase across the board, from the full-service airlines to the budget carriers, from domestic flights to long-haul international. And it’s not just fares – almost every major U.S. carrier has hiked checked bag fees, too. This is really just a classic case of companies passing on costs to their customers, and it’s a big cost at that.”
Jet fuel is typically airlines’ second-largest expense. Cudahy suggests that even if the Strait of Hormuz were to reopen, high fares are likely to persist for months. He also pointed out that increased checked bag fees rarely decrease once implemented.
