Germany’s airline group Lufthansa has announced plans to shut down its regional subsidiary, CityLine, as part of a broader strategy to manage rising costs and operational challenges. The decision comes amid a sharp increase in jet fuel prices and ongoing labour strikes that have put pressure on the airline’s operations. Lufthansa said the move is aimed at reducing losses and strengthening its overall network efficiency.
As an immediate step, the airline will remove all 27 CityLine aircraft from its flight schedule within days. The unit, which has been operating at a loss, will cease operations as Lufthansa accelerates its restructuring plans.
CityLine employs around 2,000 staff. The company said affected employees would be offered opportunities within other Lufthansa subsidiaries.
The airline also highlighted that fuel costs have risen significantly in recent months, driven by global supply disruptions linked to geopolitical tensions. At the same time, repeated strike actions by cabin crew and pilots have further strained operations.
Lufthansa has faced multiple walkouts in recent days, adding to the pressure on its flight schedules and overall performance.
Looking ahead, the group plans to reduce services across both short- and long-haul routes after the summer season. The company said it intends to streamline its network and improve competitiveness, particularly on short- and medium-haul routes.
The airline will also cut long-haul capacity by removing several intercontinental aircraft from its fleet later this year. Additional reductions are planned for the winter 2026–27 schedule, including fewer aircraft and routes under the main Lufthansa brand.
Following the announcement, Lufthansa shares declined by more than 3.5 percent in Frankfurt trading.
