Germany’s largest airline, Lufthansa, has warned of expected price increases and flight cuts. The reason is the sharp increase in jet fuel prices resulting from the closure of the Strait of Hormuz, which will raise the company’s costs by about 1.7 billion euros ($2 billion) this year.
As CNN reports, the ongoing conflict in the Middle East poses “enormous challenges” for the aviation industry. Despite the risks of fuel shortages and high prices, the airline notes that travel demand remains high and expects a “strong” summer season.
- It is noteworthy that this is not just a problem for Lufthansa.
- Global carriers such as Qantas, Turkish Airlines, and United have already raised prices or reduced flight schedules.
According to the analytical company Cirium, about 13,000 flights (about 2 million seats) were removed from the flight schedules worldwide in May alone. Lufthansa has already canceled about 20,000 summer flights, mainly short-haul flights, due to rising fuel prices.
