Lufthansa, Germany’s national flag carrier, has announced plans to cut approximately 100 domestic flights from its summer schedule, citing a doubling of state-imposed costs since 2019. CEO Carsten Spohr warned that without significant reductions in location costs, further cuts will be necessary. The decision reflects persistent concerns from airline executives about Germany’s aviation cost base, which they argue threatens the sector’s competitiveness. Rising aviation taxes and fees are also driving a shift in passenger mix towards first, business, and premium economy cabins. Lufthansa’s announcement comes amid ongoing financial challenges, including missed margin targets and recent job cuts. The German aviation industry group (BDL) has also raised alarms, warning that state-imposed costs have placed the country’s viability as a global hub in crisis.
The financial strain is part of a broader trend affecting the airline industry. Last month, Lufthansa also announced plans to cut 4,000 administrative jobs by 2030, with the majority of the cuts taking place in Germany. This follows a series of setbacks, including strikes, delayed aircraft deliveries, and underperformance at its mainline business, which have forced the company to slash its financial guidance twice in the last year.
The impact of these measures extends beyond Lufthansa. The German aviation industry association (BDL) estimates that the financial burden on the sector will rise by €1.1 billion in 2025 to €4.4 billion, which could result in the loss of 10,000 jobs and €4 billion in annual economic value. BDL Chairman Jens Bischof stated in August that airlines are increasingly avoiding Germany, with the number of aircraft stationed in the country by European point-to-point carriers falling from 190 to 130.