Lufthansa axes CityLine fleet early over strikes, fuel costs

Germany's national carrier Lufthansa on Thursday said its regional subsidiary Lufthansa CityLine will suspend operations of its 27 older aircraft starting Saturday.

The move marks an immediate cost-cutting step as Lufthansa faces mounting pressure from labor disputes and higher kerosene prices.

What has Lufthansa said about CityLine?

"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, starting the day after tomorrow, the 27 operational aircraft of Lufthansa Cityline will be permanently removed from the schedule to reduce further losses at the loss-making airline," Lufthansa announced. Previously, Cityline was not slated to cease operations until 2028.

Lufthansa also said it would withdraw four older long-haul Airbus A340-600s from its core brand fleet at the end of its summer flight schedule. The winter flight schedule will see the number of short- and medium-haul flights reduced by five aircraft, the airline said.

The airline is embroiled in a currently intractable wage dispute with the pilots' union Vereinigung Cockpit over company pension plans. The pilots are staging a two-day walkout until Friday. Thursday is also the second day of a strike by cabin staff in a push for better working conditions amid a broader labour dispute.

Meanwhile, fuel costs are rocketing globally as crude oil prices rise due to fallout from the war in Iran, including the blockage of the Strait of Hormuz.

How hard have the strikes hit Lufthansa?

Both pilots and cabin crew were staging walkouts on Thursday, as separate disputes with the company overlapped.

The separate strike actions have caused widespread flight cancellations.

Frankfurt Airport operator Fraport reported 656 cancellations out of 1,313 planned flights at the hub, mostly attributed to Lufthansa.

A mediation attempt between Lufthansa and the pilots' union Vereinigung Cockpit collapsed a day earlier after both sides failed to agree on negotiation terms. The ongoing walkouts have also overshadowed events marking the airline's 100th anniversary.

Strikes are expected to continue into Friday for core Lufthansa operations, including Lufthansa Cargo and CityLine. At the low-cost airline Eurowings, industrial action is limited to Thursday. Despite this, the carrier still expects to operate more than 70% of scheduled flights.

Edited by: Wesley Dockery