Germany's Lufthansa to shut CityLine unit amid fuel costs and strikes

Lufthansa announced it will close its CityLine regional airline and reduce flights across its network due to higher jet fuel prices and ongoing labour strikes.

German airline group Lufthansa said on Thursday that it will shut down its CityLine regional subsidiary, citing higher jet fuel prices and a series of labour strikes that forced an acceleration of its strategic plans.

“As a first, immediately effective step, the 27 operational aircraft of Lufthansa CityLine will be permanently removed from the flight programme starting the day after tomorrow, in order to reduce further losses at the loss-making airline,” the group said.

CityLine employs approximately 2,000 people, who have been offered continued employment in other subsidiaries, Lufthansa added.

Kerosene prices have more than doubled since the outbreak of the Middle East war, the company said.

In addition to the fuel crisis, Lufthansa has faced regular strike actions, including five consecutive days of walkouts this week by cabin crew and pilots.

The International Energy Agency has highlighted pressure on fuel supplies. Its Executive Director, Fatih Birol, said Europe has “maybe six weeks or so of jet fuel left” and warned of possible flight cancellations “soon” if oil supplies remain disrupted by the Iran war.

Flight reductions planned across Lufthansa network

Services on long-haul and short-haul routes across the rest of Lufthansa’s network will be reduced after the summer to cut costs, the group said.

“The goal is to focus our short- and medium-haul platforms more clearly and make them more competitive,” said Till Streichert, chief financial officer of Lufthansa Group.

Long-haul capacity will be reduced by “a total of six intercontinental aircraft at the end of the summer flight schedule,” the group said in a statement.

In the winter 2026/27 schedule, Lufthansa plans further cuts. It will remove five aircraft from the Lufthansa fleet across six destinations, affecting the number of flights operated under the main Lufthansa brand on short- and medium-haul routes.

Lufthansa’s share price was down by more than 3.5% on Thursday afternoon in Frankfurt.