The Lufthansa Group will adjust its supply capacity in response to the surge in crude oil prices and the additional burden caused by strikes.
During the summer schedule period, it will immediately and permanently exclude Lufthansa CityLine’s transport capacity. From April 18 local time, 27 CRJ aircraft will be permanently removed from the plan. The airline noted that it was already close to the limit of its aircraft operating capacity and that operating costs were high.
Furthermore, at the end of the summer schedule, the last four Airbus A340-600 aircraft will be retired, and operations of two Boeing 747-400 aircraft will be suspended. The Boeing 747-400 aircraft are scheduled to be retired in 2027.
During the winter schedule period, Lufthansa German Airlines will reduce its short- and medium-haul fleet by five aircraft, and the planned additional allocation of nine Airbus A350-900 aircraft to Discover Airlines will be brought forward.
According to the group, this series of measures will reduce its unhedged fuel costs by retiring inefficient aircraft early. The group hedges about 80% of its fuel costs, while the remaining 20% must be purchased at market prices. Through these steps, it expects to reduce costs by around 10%.
Although Lufthansa Group Chief Financial Officer (CFO) Remco Steenbergen* had already been considering the exclusion of Lufthansa CityLine from operational planning regardless of the situation in the Middle East, he explained that the company had “no choice but to implement this earlier than planned.”
*Note: The original Japanese article refers to the CFO as Til Streicher, but this translation uses the commonly known English name format for clarity.
New reduction targets have also been set for recruitment, internal events, and external consulting services, while maintaining the existing target of cutting 4,000 management positions across the group by 2030.
Among Lufthansa CityLine employees, ground staff are employed by Lufthansa Aviation. Pilots and cabin crew were offered the option of transferring to Lufthansa City Airlines between 2024 and 2025 under equivalent multi-year remuneration conditions, with any differences in working conditions to be offset by compensation payments. The company will now hold consultations with employee representatives.
