German airline Lufthansa cancels 20,000 flights:Iran war makes fuel expensive; only 6 weeks of jet fuel left in Europe

Germany’s airline Lufthansa has decided to cancel 20,000 short-haul flights from May to October. Due to the Iran war, jet fuel prices in Europe have nearly doubled. The company says this will save around 40,000 tonnes of jet fuel. The airline has also reduced around 120 flights per day starting Monday. This move comes at a time when oil supply has been affected due to the closure of the Strait of Hormuz, raising concerns over jet fuel availability in Europe. The International Energy Agency (IEA) has warned that Europe has only about six weeks of jet fuel left. Network changes, closure of loss-making routes Lufthansa said on Tuesday that it will keep its summer flight schedule stable by restructuring its short-haul network. The company will release the full plan by late April or early May. It has made major changes to its network. Loss-making routes from Frankfurt and Munich are being shut down, while flights from Zurich, Brussels and Vienna will be increased. This will help passengers get better connections for long-haul flights. By the end of summer, long-haul capacity will be slightly reduced. Six large aircraft will be removed from service, two Boeing 747s will not operate during winter, and four Airbus A340-600 aircraft will be permanently phased out in October. To reduce costs, the company is also retiring 27 aircraft from its CityLine fleet. High fuel prices and labour disputes are cited as the main reasons behind these decisions. Jet fuel shortage in Europe Due to the Iran war, tensions in the Strait of Hormuz have remained high from the beginning. This has affected fuel and gas supply. However, European transport ministers are discussing measures to deal with the jet fuel shortage. The European Union (EU) is considering options such as importing alternative US jet fuel and allowing more flexible fuel refuelling from outside sources. Michael O’Leary, head of Ryanair, warned that if the Strait of Hormuz remains closed, supply disruptions could begin from May. Impact on airlines worldwide, airfares becoming expensive Airlines across the world are feeling the impact. US-based Delta Air Lines is planning to cut about 3.5% of its network to save around $1 billion. Hong Kong’s Cathay Pacific, Malaysia’s AirAsia X, and New Zealand’s Air New Zealand are also reducing routes. Many airlines have either increased ticket prices or introduced fuel surcharges. Europe’s easyJet has warned of higher losses due to expensive fuel, while UK airline Virgin Atlantic has said that even after raising prices, profits will remain difficult this year. Impact on passengers due to rising jet fuel prices The rise in jet fuel prices is directly affecting passengers’ pockets. Fuel accounts for about 25% to 40% of an airline’s total costs. When fuel prices increase, companies either raise ticket prices or reduce flights. Changes in route networks mean that many direct flights may be discontinued. Passengers may have to take connecting flights, increasing travel time and the inconvenience of layovers.