Lufthansa has issued a statement addressing concerns over jet fuel shortages after energy officials warned that Europe may have only six weeks of supply remaining. Fatih Birol, executive director of the International Energy Agency (IEA), cautioned that flight cancellations could occur "soon" if oil supplies remain constrained by the ongoing conflict with Iran.
Lufthansa's Hedging Strategy
When approached for comment, Lufthansa informed the Mirror that it is in a stronger position than many of its competitors regarding its kerosene needs. A spokesperson for the airline stated: "The Lufthansa Group has secured ('hedged') approximately 80 per cent of its kerosene requirements for 2026. And approximately 40 per cent for 2027 based, among other things, on the price of crude oil - both at pre-crisis price levels. With this level of hedging, we are in a better position than most competitors."
Flight Reductions and Cost Savings
This development comes as the airline announced it will cut 20,000 short-haul flights from its summer schedule to reduce costs amid rising jet fuel expenses. The majority of these cuts are attributed to the grounding of its unprofitable CityLine fleet and the retirement of 27 aircraft. The airline highlighted that jet fuel prices have more than doubled and also noted ongoing labour disputes involving its employees.
A statement on the Lufthansa Group website reads: "In total, 20,000 short-haul flights will be removed from the schedule through October, equivalent to approximately 40,000 metric tons of jet fuel, the price of which has doubled since the outbreak of the Iran conflict. The schedule adjustments reduce the number of unprofitable short-haul flights across the Lufthansa Group network."
The planned consolidation of the European network is being carried out across Lufthansa Group's six hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome. Passengers will therefore continue to have access to the global route network, particularly long-haul connections. However, due to the increase in jet fuel prices, this will be achieved significantly more efficiently than before.
Government Response to the Crisis
On Tuesday, April 21, the Prime Minister discussed the Government’s efforts to alleviate pressures caused by the Iran conflict with ministers and officials during a meeting of the Middle East Response Committee. A government spokesperson said: "The discussion focused on the Government’s ongoing work to ease pressures being felt here in the UK."
This included diplomatic activities to promote progress on negotiations and restore security and stability in the region, as well as military planning to restore freedom of navigation in the Strait of Hormuz. The Prime Minister acknowledged that the impact of the war in the Middle East will be felt beyond the end of the conflict and stressed the importance of protecting British families.
They discussed a range of ongoing contingency planning, such as work with fuel suppliers, airlines, and international counterparts, to ensure people keep moving and businesses are supported. UK airlines are clear that they are currently not seeing a shortage of jet fuel, and it is right that the Government continues to work with industry to ensure we closely monitor the situation.
They said it was right that this Government is introducing wider measures to strengthen long-term resilience, including measures announced today to accelerate breaking the link between gas and electricity prices to support families and businesses under pressure and exposed to volatile gas prices.
