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Lufthansa has announced it will cut around 20,000 short-haul European flights this summer, citing soaring jet fuel prices that have made many routes unprofitable. Fuel costs have surged sharply following tensions in the Middle East, particularly linked to the ongoing conflict involving the US, Israel, and Iran, which has disrupted fuel production and transport.

The airline said the cuts would help save approximately 40,000 metric tons of fuel and will largely result from the shutdown of its CityLine service. Several destinations, including Cork, Stuttgart, and Trondheim, will be temporarily suspended. Affected passengers will either receive refunds or be rebooked on partner airlines such as SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways where possible.

Industry-wide, airlines are responding to rising costs by reducing flights and increasing ticket prices, with analysts warning of further disruptions ahead. Concerns over jet fuel shortages in Europe are growing, prompting the EU to establish a monitoring system, although officials say supply has not yet been significantly affected.

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Tens of thousands of passengers across Germany faced major travel disruptions as Lufthansa cabin crew and its regional unit CityLine staged a day-long strike, leading to widespread flight cancellations at key airports. The industrial action, organized by the UFO union, affected major hubs including Frankfurt and Munich, with Frankfurt Airport alone reporting around 580 cancelled flights and roughly 72,000 passengers impacted.

Lufthansa management criticized the strike as “completely disproportionate,” while union representatives defended the move, saying stalled wage negotiations left them with no choice but to escalate. The strike highlights growing tensions within the airline group as employees demand better pay and working conditions amid ongoing restructuring in Europe’s aviation sector.

In contrast, Lufthansa’s newer subsidiary City Airlines reached its first labour agreement with the Verdi union, securing salary increases of 20% to 35% through 2029 along with improved benefits and working conditions. The agreement comes as Lufthansa plans to shut down CityLine by the end of the year and shift short-haul operations to City Airlines, raising concerns among CityLine employees over job security and future employment.

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