Lufthansa Group announced the immediate closure of its regional subsidiary CityLine on Thursday, ending operations just two days after celebrating the German airline's centennial anniversary.
The shutdown affects 27 operational aircraft and eliminates short-haul flights from Frankfurt and Munich. CityLine ceased operations Saturday, with nearly all employees placed on immediate leave.
Lufthansa cited kerosene prices that have more than doubled since before the Iran conflict as the primary driver. The airline group, which includes Eurowings, Austrian Airlines, and Swiss, faces mounting pressure from both fuel costs and four pilot strikes since February.
Les raisons géopolitiques invoquées ne nous paraissent pas convaincantes, puisqu'aucun concurrent ne retire actuellement du marché des capacités d'une telle ampleur
Andreas Pinheiro, President of Vereinigung Cockpit pilots union — RFI
The pilots union Vereinigung Cockpit sharply criticized the decision as made without consideration for employees. Union leaders questioned the geopolitical justification, noting no competitors are withdrawing similar capacity from the market.
RFI frames the closure as a consequence of external pressures—fuel costs and strikes—while highlighting union skepticism about the justification. The French outlet emphasizes the broader European aviation context and questions whether geopolitical factors alone explain such drastic capacity cuts.
German media presents the closure as a reactive measure to current pressures, focusing on the immediate operational impacts rather than questioning management decisions. The framing suggests acceptance of the economic rationale while noting broader implications for the national carrier.
NZZ characterizes the closure as surprising and conflict-escalating, suggesting management miscalculation. The Swiss perspective emphasizes how the decision worsens labor relations and questions whether Lufthansa's premium positioning aligns with operational reality.
Lufthansa had previously planned to close CityLine and transfer routes to a new subsidiary called City Airlines, but the timeline accelerated dramatically. The company described the move as a painful but necessary step.
étape douloureuse
Till Streichert, CFO of Lufthansa — RFI
Beyond CityLine, Lufthansa plans broader capacity reductions across its network. The group will cut five aircraft from short and medium-haul operations by winter and remove six long-haul aircraft by summer's end, including four Airbus A340-600s and two Boeing 747-400s.
The CityLine fleet consisted of the group's oldest aircraft with relatively high operating costs. Lufthansa says it will attempt to redeploy affected employees within other group companies, though the union disputes whether adequate positions exist.
The closure comes as Europe faces potential summer kerosene shortages, adding pressure on airlines already struggling with post-pandemic recovery and geopolitical tensions affecting fuel supplies.