Lufthansa Considers Cutting Around 100 Domestic Flights Amid High Operating Costs
Lufthansa is assessing cutting around 100 domestic flights due to rising taxes, fees, and decreased demand primarily from reduced business travel, CEO Carsten Spohr announced.
- • Lufthansa is considering cancelling around 100 domestic flights next summer due to high taxes and fees.
- • Since 2019, state location costs have doubled, making many domestic routes unprofitable.
- • Passenger numbers have not recovered to pre-pandemic levels largely due to a decline in business travel.
- • CEO Carsten Spohr warned that without reduced financial burdens, further flight cuts are inevitable.
Key details
Lufthansa is contemplating the reduction of approximately 100 domestic flights for the upcoming summer season due to soaring taxes, fees, and operating costs that have rendered many routes unprofitable. CEO Carsten Spohr revealed that since 2019, the doubling of state location costs has pressured the airline's domestic operations, forcing a reevaluation of routes including economically challenged ones from Munich to Münster/Osnabrück and Munich to Dresden.
Passenger numbers on domestic routes have not bounced back to pre-pandemic levels, largely driven by a sustained decline in business travel. This drop is attributed to companies shifting towards video conferencing and opting more frequently for rail travel, further eroding demand for domestic flights.
Spohr stressed that without relief from the increased financial burdens imposed by regulations and taxes, further cuts to domestic flight offerings would be inevitable. These developments underline the economic strain faced by Lufthansa as it navigates a challenging landscape for air travel within Germany.
The airline industry's broader cost pressures came to the forefront with Lufthansa's announcement, reflecting the difficulties in sustaining certain domestic routes when taxed heavily and exposed to declining passenger volumes. The potential cancellations represent a significant adjustment in the airline’s domestic strategy responding directly to the changing travel habits and costly operating environment.