Airlines around the globe are in a tough spot right now, given the impact of high oil prices on airline economics. It’s arguably even worse in Europe (than the United States), where oil prices are even higher, and there’s also more of a risk of an imminent jet fuel shortage.
In the case of Lufthansa, that’s hardly the carrier’s only problem, as it also has major labor relations issues, and between pilots and flight attendants, the airline is (mostly) grounded for five straight days, with no end to the dispute in sight.
Anyway, Lufthansa is taking decisive action, seemingly both to go into “emergency” mode in light of oil prices, but also to send a message to employees as labor issues rage on.
In this post:
Lufthansa CityLine subsidiary shutting down shortly
CityLine is one of Lufthansa’s regional subsidiaries, and the intent is that the airline operates feeder flights for Lufthansa, primarily from Frankfurt (FRA) and Munich (MUC). The airline has a fleet of over two dozen planes, consisting primarily of Canadair CRJ-900s, but also of Airbus A319s.
While the plan had been for CityLine to shut down in 2027, the airline has moved forward that timeline significantly. As Lufthansa describes this, “in view of significantly increased kerosene prices, which have more than doubled compared to the period before the Iran war, as well as rising additional burdens from labor disputes, the implementation of the corporate strategy is being partially accelerated.”
As a first and immediate step, all Lufthansa CityLine planes will be “permanently removed from the flight program” as of Saturday, April 18, 2026. This is being done “in order to reduce further losses of the loss-making airline.” The airline explains that the CRJ-900s are “nearing the end of their technical operational capability and have comparatively high operating costs.”
Lufthansa claims that “discussions will be initiated with the employee representatives of Lufthansa CityLine GmbH regarding a reconciliation of interests and social plan.” All employees will be laid off, and Lufthansa emphasizes how CityLine employees have been offered jobs at other Lufthansa subsidiaries in the past (obviously with different, and probably lower, pay).
Lufthansa CityLine was supposed to end operations in 2027
Make no mistake, grounding a large fleet of jets that provide feed for Lufthansa’s network will have an impact on the operation, especially given how last minute this is. Lufthansa Group won’t have the capacity to cover all existing service with other aircraft, so expect some flight cancelations, with some routes possibly being cut, and definitely some frequency reductions.
The thought of just shutting down a subsidiary seems wild, but I think context is important here. Prior to this, the plan was to shut down Lufthansa CityLine in 2027, and largely replace it with a new feeder airline, Lufthansa City Airlines.
Wait, why would the airline group just shut down one subsidiary, and replace it with another? Well, that’s sort of Lufthansa Group CEO Carsten Spohr’s specialty. 😉 The slightly longer answer is that unions in Europe are strong and it’s quite easy for employees to go on strike (as we’re seeing now, and unlike in the United States), so when Lufthansa isn’t happy with the cost structure at one subsidiary, it just shuts it down and starts a new one.
Ultimately Lufthansa is just moving this forward by a year or so, which perhaps isn’t the craziest strategy when you consider the current reality. However, to shut down a subsidiary nearly overnight isn’t something you often see. This is clearly also a big middle finger to labor at CityLine, but then again, that’s nothing new.
Bottom line
Lufthansa has made the decision to shut down its CityLine subsidiary, and tomorrow will be its last day operating. This of course comes as a shock, since many people have tickets booked on this airline, only to likely soon find out their flight is canceled.
Lufthansa CityLine was supposed to shut down in 2027 and be replaced by Lufthansa City, but between high oil prices and the labor dispute, this timeline has all been moved forward.
What do you make of Lufthansa CityLine shutting down?
Obviously the closure has been framed in war terms. This will have a significant impact on the ageing CRJ fleet.
However, it comes in the midst of a week-long labour dispute.
Is LH management really so divorced from reality? Prancing around with the German chancellor celebrating 100 years when its customers are left scrambling for alternative flights. The event should have been cancelled and some humility and morality shown for the effects of...
Obviously the closure has been framed in war terms. This will have a significant impact on the ageing CRJ fleet.
However, it comes in the midst of a week-long labour dispute.
Is LH management really so divorced from reality? Prancing around with the German chancellor celebrating 100 years when its customers are left scrambling for alternative flights. The event should have been cancelled and some humility and morality shown for the effects of the strikes, and now closure of CL, on the fare-paying passenger. But as we see in the usa morality and humility are not in vogue.
As ever, LH management appears more concerned with looking like it's turning the company around while screwing as much profit out of every passenger.
Let's hope they can get BT to step in replace CL on regional routes but staff will be even more angered at the management decision to shut out their CL colleagues with 2 days' notice.
Is this the end of LH in Europe? Admission of defeat that its product has gone so far downhill with endless cost-cutting that it can no longer compete with LCCs? LH of the future, a rump of long-haul routes and a few connecting flights on EW, 4Y and VL. Think it's time for someone with vision to take over and evolve a proper strategy, unfortunately the home market is dying under the burdens of war, restructuring and a punitive taxation regime. I hope my flights get rebooked to OS and LX as LH is currently a shambles and if they re-start flying I doubt staff motivation will be high and this will just further contribute to the spiralling customer dissatisfaction. Pee off your loyal frequent flyers enough and eventually even they will say enough's enough
This airline will certainly not be the last casualty of the demonic policies of that Mr ‘rump!
The Crj's are average age for the fleet. No doubt there will be takers. The parts value of the airframes is quite high as they are no longer being built, and there are a lot of them in service around the globe.
It's noteworthy that many European airlines are cutting schedules following the rise in fuel cost. It may very well be that Lufthansa would have to cut the same capacity anyway, so they just decided to kill two birds with one stone. They may not need the capacity for the foreseeable future (and the Cityline was supposed to close later this year anyway) so they may as well shut down some pilots on old contracts in...
It's noteworthy that many European airlines are cutting schedules following the rise in fuel cost. It may very well be that Lufthansa would have to cut the same capacity anyway, so they just decided to kill two birds with one stone. They may not need the capacity for the foreseeable future (and the Cityline was supposed to close later this year anyway) so they may as well shut down some pilots on old contracts in the process. Firing people from a company that no longer operates is also much easier than firing them from a company that is still operating. For example, under normal circumstances, you don't have a case to fire people who strike first. But if you're firing anyone, this goes out of the way, and you can freely decide who to reemploy under new contracts at the mainline or other subsidiaries.
So at the face value, this makes some sense. But what it's gonna do to LHG's labour relationships is not gonna look nice. I won't be booking their flights anytime soon.
„ the airline operates feeder flights for Lufthansa, primarily from Frankfurt (FRA) and Munich (MUC)“
Not primarily, exclusively!
There are no Lufthansa Flights at all, CityLine or otherwise, which do not either start or end in Munich or Frankfurt.
Not true. LH2676 lhr-szg.
Interesting example and also the only example of its kind, furthermore involving a flight which is not a regular scheduled flight. As someone who does not live near the FRA and MUC hubs I can assure you that it is true: LH only flies to/from these two cities. If it’s any other flight, such as BER-DUS, it is NOT operated by Lufthansa. Normally it will not even be sold under LH flight number.
And...
Interesting example and also the only example of its kind, furthermore involving a flight which is not a regular scheduled flight. As someone who does not live near the FRA and MUC hubs I can assure you that it is true: LH only flies to/from these two cities. If it’s any other flight, such as BER-DUS, it is NOT operated by Lufthansa. Normally it will not even be sold under LH flight number.
And for the sake of this article: CityLine certainly did not fly anywhere for Lufthansa Mainline, not involving FRA or MUC.
Shutting down Cityline almost over night is quite a drastic measure … I am curious how quickly they‘ll re-establish services between MUC and Prague, Marseille, Cluj, Sibiu etc.
The upside is that finally they‘re getting rid of those dreadful CRJ 900s - I have always detested them.
They will definitely keep some of those routes if not all. I don't think LHG is particularly interested in closing destinations - places like PRG and similar are way too high demand, and obscure destinations like Cluj are where Lufthansa makes great profit due to lack of competition. They will just redistribute the capacity. The Cityline-only destinations will be reasiggned to other subsidiaries (or the mainline), and the mainline/other subsidiaries capacity will be cut at...
They will definitely keep some of those routes if not all. I don't think LHG is particularly interested in closing destinations - places like PRG and similar are way too high demand, and obscure destinations like Cluj are where Lufthansa makes great profit due to lack of competition. They will just redistribute the capacity. The Cityline-only destinations will be reasiggned to other subsidiaries (or the mainline), and the mainline/other subsidiaries capacity will be cut at high frequency destinations, simply rebooking people into remaining flights.
This is a dirty tactic. Practically collective punishment by management. Enough of the labor arbitrage. Make it right, pay people, get back to flying. Sheesh.
I wouldn't be surprised if they deny compensation or even refund to the affected passengers.
That would be a violation of EU261. I recommend fighting to get paid. They deserve it.
They’re quite fast with compensation. Less than 10 days. So far three flights cancelled this year for me.
@1990 - Yes, but they can claim that it's not Lufthansa but rather the Cityline who owes the money (that may not legally work but most customers won't sue). And since they're closing the Cityline, they can just let it go bankrupt and not pay out anything.
Keep up the good work, Spohr!
Exactly. The competition appreciates him.
LH management never cease to amaze me, this sounds like they're cutting off their nose to spite their face. I'm glad I made a cheap Virgin points redemption on AF for my upcoming trip to Düsseldorf instead of suffering the indignity of spending £200 for 90 minutes on Eurowings and now the risk of denied boarding to accommodate pax affected by the cancellation of the Cityline flight departing to FRA an hour before.
In any...
LH management never cease to amaze me, this sounds like they're cutting off their nose to spite their face. I'm glad I made a cheap Virgin points redemption on AF for my upcoming trip to Düsseldorf instead of suffering the indignity of spending £200 for 90 minutes on Eurowings and now the risk of denied boarding to accommodate pax affected by the cancellation of the Cityline flight departing to FRA an hour before.
In any event, getting rid of those CRJs can only be a good thing in the longer term. Hopefully they'll be able to get Air Baltic or another A220/Embraer operator to fill the gap in the short term.
Ironically a few weeks ago I was booked on Lufthansa, the flight was cancelled following a technical problem. It happens. They rebooked me on Air France. The AF flight was delayed 4 hours. The AF staff were great and the captain came out and spoke to everyone. I made a claim to both airlines. Within 14 days I received €600 from Air France. Despite the Lufthansa flight being cancelled following a technical problem ( issue...
Ironically a few weeks ago I was booked on Lufthansa, the flight was cancelled following a technical problem. It happens. They rebooked me on Air France. The AF flight was delayed 4 hours. The AF staff were great and the captain came out and spoke to everyone. I made a claim to both airlines. Within 14 days I received €600 from Air France. Despite the Lufthansa flight being cancelled following a technical problem ( issue with an engine) it took 3 weeks for them to respond and declining my claim. I responded immediately and am still waiting.
A technical issue is not necessarily subject to EU261. You don't mention the reason for the AF delay.
Two different cases with potentially two different results.
But these days is so easy to bash Lufthansa.
Didn’t Spohr’s wife get arrested for running over someone with her landrover in Italy? Whatever happened to that.
Your comment is inappropriate and unobjective.
I assume that this accident is being investigated by the authorities or has already been investigated. Ms. Spohr is not a public figure and therefore has a right to privacy.
I find your comment shameful and don’t understand why you made it.
Thank you Klaus for making me google about Vivian Alexandra Spohr.
I didn't know nor even cared when Gom brought it up until you mentioned it.
Vivian should thank you for making me read TMZ.
Cry to your therapist, you're not paying us Car
She was arrested, but nothing happened because nothing happens to the 1% when they hit and kill people in BMW X5s.
And why is this comment posted here???
mrs spohr is part of the lh help alliance, a lh funded charity
The impact is kinda crazy: no more Lufthansa flights between Munich and Warsaw, between Marseille and Munich, between Munich and Prague etc.
The Romanian city Cluj is completely cut off.
Taking 22 CRJ‘s + 12 A319 out of service does have a considerable impact.
they'll all be transferred to Lufthansa City or another subsidiary. Those flights and destinations will not be stopped.
CRJ‘s will not come back.
And A319 will not be transferred immediately. It will take some time.
those destinations and flights are not going away.
@Klaus_S - CRJs may not come back (though they very well may, just put them under another subsidiary) but the routes will. For now they're cancelled because it can't be fixed overnight, but long term I don't expect LHG to give up on them. They will readjust the capacity, likely reducing frequencies in a way that high frequency routes will get fewer frequencies with bigger planes, and the low frequency routes will get served by...
@Klaus_S - CRJs may not come back (though they very well may, just put them under another subsidiary) but the routes will. For now they're cancelled because it can't be fixed overnight, but long term I don't expect LHG to give up on them. They will readjust the capacity, likely reducing frequencies in a way that high frequency routes will get fewer frequencies with bigger planes, and the low frequency routes will get served by the low-capacity planes that become available in the process. There's no way they will kill PRG-MUC for example, or that Cluj won't get any replacement.
They probably wanted to reduce the capacity anyway, as many EU airlines do at the moment due to the fuel costs.
Amazingly swift - and last minute - change. Am however today flying an itinerary that, until three days ago, included a LH transatlantic tonight. So I get it even if I don’t fully agree with it.
If only U.S. airlines acted so decisively against their delusional crew! Frequent flyers would cheer if American replaced its cabin crew. Short-term pain for long-term gain!
@ George -- Yes, aviation would be so much better if all airlines displayed the decisive leadership we see at Lufthansa Group! :p
Remember how Spohr tried to replace the Austrian AOC with the Tyrolean AOC?
…that didn’t ent too well for Lufthansa.
Replace them with...? Do enlighten us whom they should hire, because in the last hundred years all airlines complain about shortage of cabin staff.
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