German aviation company Lufthansa Group says it will cut 20,000 short-haul flights until October as the Iran war drives up oil prices and raises concerns that some countries may face jet fuel shortages, according to a media report.
Lufthansa said on Thursday that it would cancel less profitable routes and focus on flights to and from its hub airports in Frankfurt and Munich. The move could save approximately 40,000 tonnes of jet fuel, Al Jazeera reported.
The German airline had previously announced it would ground 27 aircraft in its short-haul CityLine subsidiary earlier than planned.
The fuel crisis has been triggered by the ongoing standoff between the United States and Iran in the Strait of Hormuz, a key waterway through which about one-fifth of the world’s oil and liquefied natural gas is transported.
Since the escalation of the conflict in late February, jet fuel prices have more than doubled in some markets.
European airlines have been particularly affected, as jet fuel is one of their largest operating costs and they rely heavily on imports from the Middle East. Around 75 percent of Europe’s jet fuel imports come from the region, making any prolonged disruption especially difficult for the sector.
Lufthansa said it currently has secured enough jet fuel “for the coming weeks” and is pursuing a range of measures to ensure stable supply during the summer, including the physical procurement of fuel.
According to the Associated Press, the global price of jet fuel rose from about $99 per barrel at the end of February to as high as $209 per barrel in early April.
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