Lufthansa to remove 20,000 summer flights to save on fuel costs
The first 120 cancellations began on Tuesday
DeeperDive is a beta AI feature. Refer to full articles for the facts.
DEUTSCHE Lufthansa AG will scrub 20,000 uneconomic short-haul flights from its European summer schedule to save on jet fuel, which has doubled in price since the start of the Iran war.
The cuts will amount to 1 per cent of available seat-kilometres and save around 40,000 tons of jet fuel, Europe’s largest airline group said in a statement late on Tuesday. The move comes after the carrier last week announced the shut down of its Cityline regional unit and the grounding of 27 older, fuel-guzzling aircraft.
Lufthansa has taken some of the most drastic steps among global airlines since the conflict started, as it also contends with walkouts by pilots and cabin crew.
The first 120 cancellations were implemented on Tuesday, effective until the end of May. Broader reductions through to the end of the summer scheduling season will be unveiled by late April or early May.
Globally, industry capacity for May has been reduced by about 3 percentage points, with all but one of the 20 largest airlines slashing flights, according to data compiled by analytics firm Cirium. It’s revising an initial prediction of 4 per cent to 6 per cent growth for the year and says a decline of as much as 3 per cent is possible under certain conditions.
Lufthansa is trying to boost profitability with a plan to cut 4,000 administrative jobs by 2030 and shift more short-haul flying to lower-cost units such as City Airlines and Discover, where crew costs are as much as 40 per cent lower than at the flagship airline. NYTIMES
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
New CPF life-cycle investment scheme could channel up to S$9 billion a year into Singapore stocks: Citi
SGX RegCo proposes tighter disclosures on pay, dividends and investor relations to lift valuations
From Thai jasmine rice to salmon: Singapore could see tighter supply of some foods amid Iran war
Suntec Reit flags near-term pressure on convention business as bookings slow in wake of Iran war