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Lufthansa Cuts Capacity Amid Iran War Fuel Costs

Wall Street Journal US Business •
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Deutsche Lufthansa announced plans to reduce long-haul capacity by six intercontinental aircraft and ground inefficient planes as the airline grapples with soaring fuel costs linked to the Iran war. The German carrier group said Thursday these measures are unavoidable due to increased fuel prices caused by the Strait of Hormuz blockade following the U.S.-Israel conflict with Iran.

Chief Financial Officer Till Streichert stated the goal is to focus short- and medium-haul operations to enhance competitiveness. As part of the restructuring, Lufthansa CityLine will permanently remove its 27 operational aircraft from the summer flight schedule starting Saturday. The airline's capacity cuts come as carriers worldwide face pressure from geopolitical tensions disrupting fuel supplies and driving up operating expenses.

The capacity reduction marks a significant operational shift for Lufthansa as it seeks to weather the financial impact of regional conflicts on aviation fuel costs. The grounding of aircraft and route adjustments reflect the broader challenges facing airlines as they navigate volatile fuel prices and geopolitical instability.