Lufthansa moved on Thursday to accelerate the retirement of its CityLine aircraft, saying rising kerosene costs and labor disputes are forcing the airline to act sooner than planned. The German carrier said the 27 aircraft in its regional subsidiary will be removed from the schedule starting Saturday, a sharp shift from a phase-out that had been planned for 2028. The move comes as strikes hit both pilots and cabin staff, while the company says fuel prices have more than doubled compared with the period before the Iran war.
Immediate fleet cuts as Lufthansa faces pressure
The airline said the CityLine decision is an immediate cost-cutting step aimed at reducing further losses at the loss-making regional unit. Lufthansa said the current situation is compelling it to speed up a broader corporate strategy because of “significantly increased kerosene prices” and “rising additional burdens from labor disputes. ”
In the same announcement, Lufthansa said it would withdraw four older Airbus A340-600s from its core brand fleet at the end of the summer flight schedule. It also said the winter schedule will include a reduction of five short- and medium-haul aircraft. The company framed the changes as part of a wider effort to cut capacity and remove less efficient aircraft from service.
Strikes add to the pressure on Lufthansa
The cost cuts come during an intractable wage dispute with pilots over company pension plans, while cabin staff are also on strike for better working conditions. The pilots began a two-day walkout that runs until Friday, and Thursday marked the second day of the cabin crew strike.
The overlapping action has already led to widespread cancellations. Frankfurt Airport operator Fraport said 656 flights were canceled out of 1, 313 planned at the hub, with most cancellations tied to Lufthansa. The airline said strikes are expected to continue into Friday for core Lufthansa operations, including Lufthansa Cargo and CityLine.
Fuel shock and wider capacity changes
Lufthansa’s move also reflects a broader jet fuel shock affecting Europe. The airline said its fuel consumption is hedged at an above-average rate of around 80 percent based on crude oil prices, but the remaining 20 percent still has to be bought at sharply higher market prices. That expensive portion of fuel needs will be reduced by around 10 percent,.
CityLine’s removal is especially significant because the 27 aircraft have been central to regional service. Lufthansa said the fleet will be permanently removed from the schedule to reduce losses, while the company also moves toward a wider fleet reshaping that includes older long-haul aircraft.
What happens next for Lufthansa
A mediation attempt between Lufthansa and the pilots’ union collapsed a day earlier after the two sides failed to agree on negotiation terms. The airline’s 100th anniversary events have also been overshadowed by the labor unrest and the cost pressure tied to fuel. Lufthansa still expects its low-cost unit Eurowings to operate more than 70 percent of scheduled flights, but the immediate focus remains on how deeply the strikes and high fuel costs will keep affecting Lufthansa in the days ahead.
For now, Lufthansa is signaling that the CityLine decision is not a temporary adjustment but a forced acceleration of a long-planned retreat, with Lufthansa preparing for more disruption as the walkouts and kerosene shock continue.
