LAS VEGAS — A growing energy crisis triggered by the ongoing conflict around Iran has pushed one of Europe’s largest airline groups to slash thousands of scheduled flights, as carriers across the globe scramble to cope with skyrocketing jet fuel costs and looming supply shortages. Lufthansa Group, the parent company of Lufthansa Airlines and five other major European carriers, announced Tuesday that it will cut 20,000 short-haul flights from its schedule through the end of October, a move designed to conserve fuel and reduce exposure to volatile energy markets.
The bulk of the canceled routes are low-profit short-haul services centered on the group’s two main hub airports in Germany, Frankfurt and Munich. The company estimates the flight cuts will save roughly 40,000 metric tons of jet fuel, a critical buffer as supplies tighten across the continent. The cuts are just the latest cost-cutting measure from the group: just last week, it shut down regional subsidiary CityLine to reduce operational overhead. The ongoing consolidation of the group’s European network will impact all of its operating carriers, including Austrian Airlines, Brussels Airlines, SWISS and ITA Airways, as well as secondary hubs across Brussels, Rome, Vienna and Zurich.
The root of the crisis traces back to the outbreak of hostilities between the U.S.-Israel coalition and Iran in late February. Conflict near the Strait of Hormuz, the strategic Gulf waterway through which roughly 20% of the world’s daily oil supply transits, has roiled global energy markets and sent jet fuel prices soaring. In some regional markets, jet fuel prices have more than doubled since early March. For airlines, which count fuel as one of their largest single operating expenses, this sudden price shock has created immediate financial pressure.
That pressure is already being passed on to consumers ahead of the peak summer travel season. Travelers are facing fewer available route options, alongside broad increases in fares, fuel surcharges and checked baggage fees across most major carriers.
Warnings over looming jet fuel shortages in Europe have been growing more urgent in recent weeks. On April 16, the head of the International Energy Agency estimated that the continent only has roughly six weeks of jet fuel stockpiles remaining, and warned that carriers would be forced to cut schedules if additional supplies were not secured quickly. EU Energy Commissioner Dan Jørgensen reinforced that warning Wednesday, noting that the energy crisis sparked by the conflict could keep prices elevated for months, or even years.
“This is not a short-term, small increase in prices,” Jørgensen told reporters in Brussels. The conflict is currently costing the European Union roughly 500 million euros ($600 million) every single day, he added. “Even in a best-case scenario, it’s still bad.” Jørgensen confirmed that EU national governments are deeply concerned about the risk of widespread jet fuel shortages, and while the European Commission is taking all available action to mitigate the crisis, the bloc is currently operating in a defensive posture focused on avoiding major disruptions.
For its part, Lufthansa has stated that it has secured enough fuel to meet its operational needs for the coming weeks, and is pursuing a range of long-term measures to stabilize supply ahead of the busy summer travel period, including targeted bulk procurement of jet fuel.
Lufthansa is far from alone in cutting back its flight schedule. Data from aviation analytics firm Cirium shows that 19 of the world’s 20 largest airlines have already canceled scheduled May flights across every major global region. Major carriers joining the cuts include U.S. giants Delta Air Lines, United Airlines and American Airlines, as well as Air Canada, Emirates, Qatar Airways, Air China, British Airways and Air France-KLM.
Other smaller and mid-sized carriers have already announced deep, targeted cuts to their summer schedules. Last week, Swiss-based leisure carrier Edelweiss Air said it would drop all planned summer service to Denver and Seattle, and reduce frequency on its Las Vegas route through early autumn. New Zealand’s flag carrier Air New Zealand is consolidating approximately 4% of its scheduled services across May and June, with management noting that local jet fuel prices are currently double the normal seasonal average.
Global market data underscores the severity of the price shock: benchmark jet fuel prices jumped from roughly $99 per barrel at the end of February to a peak of $209 per barrel in early April. Beyond canceling existing flights, many carriers are also rolling back plans for capacity growth this year to keep costs contained. Delta Air Lines, which opened U.S. airline first-quarter earnings season in early April, said it was scrapping planned capacity increases for June, leaving 3.5% fewer seats available for the month than it had initially projected.
As U.S. carriers continue to release first-quarter earnings results, the uncertainty around future fuel prices has already hit corporate financial outlooks. Multiple major U.S. carriers have cut their full-year profit forecasts or declined to update projections amid the ongoing market volatility. On Wednesday, Southwest Airlines said it expects second-quarter earnings to come in well below Wall Street analyst estimates, citing persistent high fuel prices, and held its 2026 long-term outlook steady. A day earlier, United Airlines revised its full-year adjusted earnings forecast down to $7 to $11 per share, from an earlier projection of $12 to $14.
