In view of significantly increased kerosene prices, which have more than doubled compared to the period before the Iran war, as well as rising additional burdens from labor disputes, the implementation of the corporate strategy is being partially accelerated. To this end, an initial package has been approved that provides for a reduction of the flight program on short-, medium-, and long-haul routes, as well as measures for early fleet modernization.

As a first immediately effective step, the 27 operational aircraft of Lufthansa CityLine will be permanently removed from the flight program starting the day after tomorrow, in order to reduce further losses of the loss-making airline. The Canadair CRJ aircraft are nearing the end of their technical operational capability and have comparatively high operating costs.

In the second step, long-haul capacity will be reduced by a total of six intercontinental aircraft at the end of the summer flight schedule. To this end, the last four remaining Airbus A340-600s will leave the fleet in October, thus bringing the era of this aircraft type at Lufthansa to a definitive end. Additionally, two Boeing 747-400s will be grounded from October onwards for the coming winter. The final farewell to this aircraft type is planned for next year.

In the coming 2026/27 winter flight schedule, the third step will take place with a reduction in the capacities of the Lufthansa core brand as part of the envisaged consolidation of short- and medium-haul traffic across six hubs of the Lufthansa Group. This additional capacity reduction corresponds to five aircraft of the Lufthansa core brand.

The package of measures generates a disproportionate savings effect on fuel costs. On the one hand, particularly inefficient aircraft are being removed from flight operations early. On the other hand, the saved kerosene quantity reduces the unhedged portion of the Group’s fuel requirements.

The kerosene consumption of the Lufthansa Group’s passenger airlines is hedged at an above-average rate of around 80 percent based on crude oil prices. However, the remaining 20 percent must still be purchased at significantly increased market prices. This particularly expensive portion of fuel requirements will be reduced by around 10 percent.

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.