Lufthansa cuts capacity amid rising cost of fuel, labor disputes

Germany's Lufthansa LHAG.DE said on Thursday that 27 aircraft belonging to its subsidiary CityLine would be permanently withdrawn from service this week amid rising jet fuel prices and costs from industrial action.

The move is part of a broader package of measures aimed at dealing with rising costs, the company said in a statement.

At the end of the summer flight schedule, four older Airbus A340-600 long-haul aircraft will be withdrawn from the Lufthansa core brand's fleet.

During the 2026/2027 winter schedule, short and medium-haul offerings will be reduced by five aircraft, according to the group.

Its more cost-efficient subsidiary Discover is to expand more rapidly with new Airbus A350 jets.

Lufthansa is currently in a bitter dispute with pilots' union Vereinigung Cockpit over the company pension scheme.

Pilots on Thursday began the fourth round of strikes, with a two-day walkout running until Friday.

-Reporting by Ilona Wissenbach in Frankfurt and Friederike Heine in Berlin, editing by Miranda Murray and Thomas Seythal/Reuters