Lufthansa Streamlines Short-Haul Network Amid Drive for Economic Efficiency
Economy / Finance

Lufthansa Streamlines Short-Haul Network Amid Drive for Economic Efficiency

The contraction of the Lufthansa Group’s short-haul network will continue even after the cessation of Lufthansa Cityline and the removal of 20,000 flights scheduled for the current summer program.

According to Dieter Vranckx, Chief Commercial Officer on the Executive Board, the airline will specifically reduce capacity on core short-haul routes whenever it is economically sound. This process is ongoing, and maintaining the quality of connections for customers must remain a priority. Vranckx indicated that the majority of the consolidation within continental traffic is expected to be complete by 2028 at the latest.

While the executive did not specify how much further the network would be rationalized, Vranckx defended the ongoing measures by stating that it would not be economically viable for the entire group to operate routes to every airport from all six of its major hubs. The group has set a goal of achieving a standardized earnings margin between eight and ten percent, a target they are currently far from reaching. Therefore, Lufthansa needs an efficient network while simultaneously ensuring customers have optimal flight options.

Vranckx confirmed that the airline intends to continue serving key economic regions of Germany. The objective remains to link these areas to at least one major hub, thereby ensuring connection to the long-haul network. However, this strategy presents economic challenges, especially due to the enormously high operating and location costs within Germany. Vranckx concluded that significant transformations are expected across Europe over the next five to ten years, noting that the European business represents a challenge not only for Lufthansa but for many other airlines as well.