In brief
Lufthansa has decided to cancel 20,000 summer flights due to an unprecedented rise in jet fuel prices, which have doubled since the onset of the US-Israel conflict. The airline points to the unprofitability of many routes, particularly short-haul flights. This move is part of a broader trend where airlines, including KLM-France and Delta, are temporarily cutting flights and raising prices to manage increasing operational expenses. Analysts predict further price hikes and cancellations as the conflict continues, which has disrupted fuel supplies from the Middle East.
German airline Lufthansa will cut 20,000 short-haul flights over the summer, saying soaring fuel prices have made many journeys unprofitable for the firm.
Jet fuel has doubled in price since the start of the US-Israel war with Iran as the conflict has slowed its production and transportation across the Middle East.
Several airlines, including KLM-France and Delta, have also temporarily cut some flights while others have raised ticket prices as they pass on expenses to customers.
Analysts have warned that travellers should expect further ticket price rises and more cancelled flights as the conflict continues.
The Gulf is a major source of aviation fuel, accounting for about 50% of Europe's imports. The bulk of it comes through the Strait of Hormuz, which Iran has effectively closed in response to US and Israeli attacks.
The increase in jet fuel prices reflects the role Middle Eastern refineries play in supplies. The Al-Zour refinery in Kuwait alone provides roughly 10% of Europe's jet fuel imports, according to Energy Intelligence.
The International Energy Agency warned last week that Europe could run out of jet fuel in weeks, though the UK government and airlines say they are not seeing a disruption in supply.
Lufthansa said it was cutting down its European network, but that passengers will continue to have access to the global route network, particularly long-haul connections. However, due to the increase in jet fuel prices, this will be achieved significantly more efficiently than before, the airline stated.
This operational change is expected to save approximately 40,000 metric tons of jet fuel. The announcement follows Lufthansa's decision to accelerate the permanent closure of its CityLine service and its retirement of 27 aircraft due to increased kerosene prices and labor disputes.
The first 120 of these flight cuts were implemented on Tuesday, affecting routes from Frankfurt to Poland and Norway.
