Wow: Lufthansa Permanently Shuts Down CityLine Subsidiary Overnight

By: Ben Schlappig

Published: April 16, 2026

38 comments

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 will cease operations shortly

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.

Lufthansa City is replacing Lufthansa CityLine

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?

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omarsidd Diamond

April 23, 2026, 10:59 pm

I do wonder if the new subsidiary is called "City" (vs old CityLine) so they can save a few euro by modifying existing signage and livery without requiring all-new signs and paintjobs?

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LHRHONflyer New Member

April 17, 2026, 6:11 am

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

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AeroB13a Guest

April 17, 2026, 3:37 am

This airline will certainly not be the last casualty of the demonic policies of that Mr ‘rump!

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lorenzo Guest

April 16, 2026, 8:23 pm

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.

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Samo Diamond

April 16, 2026, 5:22 pm

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.

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