Lufthansa announces 100+ route cuts
Rising German aviation taxes and fees will force national flag carrier Lufthansa to cut about 100 domestic flights from its forthcoming summer schedule, the company’s chief executive, Carsten Spohr has said.
Government-imposed costs for airlines in Germany have roughly doubled over the past six years, he explained.
“Without a reduction in location costs, further cuts will be unavoidable,” Spohr said. “This involves around 100 domestic flights per week, which could be eliminated again next summer.”
Higher taxes and fees on economy ticket costs are accelerating a shift in the airline’s passenger mix towards first, business, and premium economy cabins.
The complaints from Lufthansa echo long-standing grievances from airline executives about Germany’s aviation cost base, which they argue hinders competitiveness.
Last month Lufthansa also announced plans to cut 4,000 administrative jobs by 2030, with the majority of the cuts taking place in Germany.
In the face of strikes, delayed aircraft deliveries, and underperformance at its mainline business, Lufthansa has been forced to slash its financial guidance twice in the last year and has missed medium-term margin targets set in 2021.
The German aviation industry association (BDL) has warned that the country’s viability as a global hub is in crisis, citing state-imposed costs since 2019. Airlines are now avoiding Germany, BDL Chairman Jens Bischof stated in August, with the number of aircraft stationed in the country by European point-to-point carriers falling from 190 to 130.
BDL estimates that the financial burden on the industry will rise by €1.1 billion ($1.2 billion) in 2025 to €4.4 billion, which will result in the loss of 10,000 jobs and €4 billion ($4.3 billion) in annual economic value.
