Germany’s national carrier Lufthansa said on Thursday that its regional subsidiary Lufthansa Cityline would suspend operations of 27 of its older aircraft from Saturday.
The move is an immediate cost-cutting move as Lufthansa faces increasing pressure from labor disputes and high kerosene prices.
What did Lufthansa say about CityLine?
“Given the significant increase in kerosene prices, which have more than doubled compared to the period before the Iran war, as well as the growing additional burden from labor disputes, the implementation of the corporate strategy is being partially accelerated.”
Lufthansa announced, “In a first, effective immediately move, starting the day after tomorrow, Lufthansa CityLine’s 27 operating aircraft will be permanently removed from the schedule to reduce further losses at the loss-making airline.” Previously, CityLine was not planned to cease operations until 2028.
Lufthansa also said it would withdraw four older long-range Airbus A340-600s from its main brand fleet at the end of its summer flying programme. The airline said the number of short- and medium-haul flights in the winter flight schedule will be reduced to five aircraft.
The airline is currently embroiled in a bitter pay dispute with pilots’ union Cockpit over the company’s pension plans. The pilots are conducting a two-day walkout till Friday. Thursday marked the second day of the cabin staff strike demanding better working conditions amid a widespread labor dispute.
Meanwhile, fuel prices are rising globally as crude prices are rising due to the fallout from the war in Iran, including the blockage of the Strait of Hormuz.
How deep was the impact of the attacks on Lufthansa?
Both pilots and cabin crew were walking out on Thursday due to separate disputes with the company.
Separate strike actions led to mass cancellations of flights.
Frankfurt Airport operator Fraport reported 656 cancellations out of 1,313 planned flights at the hub, mostly attributed to Lufthansa.
An attempt at mediation between Lufthansa and pilots’ union Cockpit failed a day earlier as the two sides failed to agree on negotiating terms. The ongoing walkout has also overshadowed events to mark the airline’s 100th anniversary.
The strike is expected to continue on Friday for main Lufthansa operations, including Lufthansa Cargo and CityLine. At low-cost airline Eurowings, industrial action is limited to Thursday. Despite this, the carrier is still expected to operate more than 70% of scheduled flights.
Edited by: Wesley Dockery