Lufthansa Group, the parent company of Lufthansa Airlines and several other European carriers, announced it will eliminate 20,000 short-haul flights through October. This decision stems from surging oil prices and concerns over jet fuel availability, exacerbated by geopolitical conflicts. The cancellations, focused on less profitable routes from its hub airports in Frankfurt and Munich, are projected to save approximately 40,000 tonnes of jet fuel.
The price of jet fuel has more than doubled since late February. This surge significantly impacts airlines, as fuel constitutes a major operating expense. Travelers can expect fewer flight options and higher fares heading into the summer season, with potential increases in baggage fees and added fuel surcharges.
Fighting in key global oil transit zones has disrupted fuel prices worldwide. The International Energy Agency warned Europe had limited jet fuel reserves, necessitating route reductions. EU officials have cautioned that the energy crisis could persist for months or even years, costing Europe hundreds of millions daily and raising concerns about potential fuel shortages.
Lufthansa has secured sufficient jet fuel for the immediate weeks and is actively implementing measures for stable summer supply. Many of the world's largest airlines, including Delta, United, American, Emirates, and Air France-KLM, have also canceled May flights. Other carriers are reducing routes and slowing expansion plans to manage costs, with several US airlines revising their financial forecasts downward due to fuel price uncertainty.