Lufthansa Cancels 20,000 Flights to Conserve Fuel, Other Airlines Got Spooked as Well

Europe has been experiencing jet fuel issues due to the war in Iran. Many large airlines have been cancelling flights to cope with the limited supply of jet fuel. Lufthansa is one of those carriers that recently cancelled 20,000 short-haul flights to conserve fuel. It has cancelled flights until October in one of the biggest airline schedule reductions seen in recent history.

Germany's flagship carrier is undergoing some major shifts as it celebrates its 100^th anniversary this year. Lufthansa is focusing on a massive modernisation effort, including the rollout of its Allegris cabin interiors, while simultaneously navigating operational challenges such as soaring fuel costs and labour disputes.

Lufthansa Cancelled Flights but Still Generates Revenue

As the war in Iran continues, Lufthansa struggles to conserve its limited fuel supplies whilst also focusing on generating profit with long-haul and key feeder routes, even as they trim less lucrative regional services.

Brent crude prices have surged above $100 a barrel, while aviation fuel has risen even faster. Analysts say the flight cuts by Lufthansa and other large carriers, is a sign that broader disruption may be ahead as the fuel crisis deepens.

Why Lufthansa Cuts Only Short-Haul Flights

The airline industry relies heavily on stable fuel markets, and the current geopolitical shock has shaken that balance. With major parts of the Middle East energy supply chain broken, Lufthansa decided to cancel roughly 120 short-haul flights per day.

Most cancelled Lufthansa flights comprise of short flights within German and around nearby European cities. This prevents the airline from passing on the full cost of pricy fuel to consumers. Travellers can take alternative transport options like the rail, rather than take expensive flights to nearby destinations.

Other Airlines Cut or Cancelled Flights as Well

Lufthansa is not alone. Several other airlines have also reduced flights, cancelled flights or warned of pricier airline ticket rates. Here are some carriers that have suspended or rescheduled trips to conserve on remaining jet fuel:

• United Airlines has cut their number of trips and warned that sustained fuel inflation could significantly raise costs.
• Air Canada is suspending select routes to protect margins and reduce fuel burn.
• Air New Zealand said it would lower capacity by around 5%.
• KLM, Air France, Ryanair, SAS, Edelweiss, and Aer Lingus have also adjusted services or reviewed summer schedules as the crisis worsens.
• Across Asia, Vietnam Airlines, VietJet, Bamboo Airways, and AirAsia are some airlines scaling back operations or reassessing routes.

One Airline is Spared from Jet Fuel Shortages

Delta Air Lines has been spared from jet fuel issues and avoided major flight cancellations and route cuts because the carrier owns an oil refinery, giving it more control over jet fuel supply and costs.

Delta owns the refinery through its subsidiary, Monroe Energy, LLC. Acquired in 2012 and located near Philadelphia, it produces jet fuel and other products, providing about 75% of Delta's fuel demand through production and exchange agreements.

According to recent reports, a few major carriers like British Airways owner IAG, EasyJet, and Jet2Holidays have stated they do not plan to change their schedules as of April 24.

Analysts say that airline companies may soon introduce fuel surcharges, trim baggage allowances, consolidate routes or decrease flight frequencies to cope with the jet fuel crisis. Travellers who have booked flights in advance, before the Iran war, are encouraged to monitor airline emails and check for any changes to their flight booking.