Jet fuel prices surge amid W Asia crisis: Lufthansa cuts 20,000 flights, adjusts summer flight schedule

New Delhi [India], April 22(ANI) Germany's flag carrier and largest airline Lufthansa has announced cancellation of 20,000 of its short-haul flights between May and October, a move aimed at saving jet fuel, the price of which has doubled since the outbreak of the Iran conflict.
The German carrier cancelled about 120 daily flights on Sunday stating that its capacity will be "marginally reduced," by less than one per cent in available seat kilometres, through the cancellation of unprofitable routes, particularly at its Frankfurt and Munich hubs till the end of summer season that typically runs till mid-October.
It will also selectively expand services in Zurich, Vienna and Brussels as part of a network rebalancing strategy, Lufthansa said
"In total, 20,000 short-haul flights will be removed from the schedule through October, equivalent to approximately 40,000 metric tonnes of jet fuel, the price of which has doubled since the outbreak of the Iran conflict," the German carrier said in a statement.
Short-term adjustments through May 31 have been already implemented while flight schedule optimizations from June onward to be published in late April, it said.
The planned consolidation of the European network is being carried out across Lufthansa Group's six hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome.
Lufthansa Group is also accelerating a further key strategic step in the consolidation of European networks within its hub airlines - Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways.
"With the cancellation of routes from Frankfurt to Bydgoszcz and Rzeszow (Poland) as well as Stavanger (Norway), at least three destinations have been temporarily removed from the current flight schedule. Ten connections are being consolidated within the Group via other hubs," it said.
Lufthansa is one of the world's largest airlines, with main hubs in Frankfurt and Munich. It serves over 200 destinations, connecting Germany to Europe and the rest of the world.
For the flights scheduled in the summer timetable, Lufthansa said it "expects a largely stable fuel supply" and is "pursuing a range of measures to this end, including the physical procurement of jet fuel as well as price hedging."
The move comes against the backdrop of a sharp escalation in crude oil prices triggered by the ongoing West Asia crisis, which has significantly inflated jet fuel costs for airlines across the world. Carriers across the world have been slashing their flights or increasing their prices in view of the sharp increase in the jet fuel prices.
Disruptions linked to the conflict, including constraints around key supply routes including the Strati of Hormuz, have pushed Brent crude above $100 per barrel and driven jet fuel prices sharply higher, forcing airlines worldwide to reassess capacity and pricing strategies.
Fuel accounts for up to one-third of airline operating expenses, making carriers particularly vulnerable to oil price volatility.
Following the warning by the International Energy Agency that Europe has less than six weeks of supplies remaining, transport ministers from European countries have met to discuss plans to prevent the region running short of jet fuel. (ANI),