Germany's national carrier Lufthansa announced on Thursday that its regional subsidiary Lufthansa CityLine will suspend operations of its 27 older aircraft starting Saturday. This move is an immediate cost-cutting measure in response to mounting pressure from labor disputes and sharply higher kerosene prices, which have more than doubled since the war in Iran began, according to the company's statement.
Lufthansa stated: "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. As a first, immediately effective step, the 27 operational aircraft of Lufthansa CityLine will be permanently removed from the schedule to reduce further losses at the loss-making airline." Previously, CityLine was not slated to cease operations until 2028.
The airline also said it would withdraw four older long-haul Airbus A340-600s from its core brand fleet at the end of the summer flight schedule, with the winter schedule seeing a reduction of five aircraft for short- and medium-haul flights. Lufthansa is currently embroiled in an intractable wage dispute with the pilots' union Vereinigung Cockpit over company pension plans, leading to a two-day walkout, while cabin staff are also striking for better working conditions.
Meanwhile, fuel costs are soaring globally due to rising crude oil prices triggered by the war in Iran, including the blockage of the Strait of Hormuz. The overlapping strikes by pilots and cabin crew on Thursday caused widespread flight cancellations, with Frankfurt Airport reporting 656 cancellations out of 1,313 planned flights, mostly attributed to Lufthansa. A mediation attempt between the airline and the pilots' union collapsed a day earlier, and the ongoing industrial action has overshadowed events marking Lufthansa's 100th anniversary, with strikes expected to continue into Friday for core operations.
Source: www.dw.com