Soaring aviation fuel prices have pushed airlines into 'self-preservation mode,' prompting intensified flight cancellations ahead of the summer peak season.

Data from aviation analytics firm Cirium shows global capacity in May has already been cut by approximately 3 percentage points; among the world’s top 20 airlines, only one has refrained from cutting flights. The firm has downgraded its full-year capacity growth forecast—from an earlier projection of 4%–6% growth—to a revised outlook of 'potentially declining by 3% under certain conditions.' This crisis initially affected only Middle Eastern carriers and their airspace, but rapidly spread globally after the U.S. Navy blockaded the Strait of Hormuz, cutting off Iranian oil exports. KLM Royal Dutch Airlines announced on Thursday that it will cancel 80 round-trip flights from Amsterdam Schiphol Airport over the next month, joining United Airlines, Lufthansa, and Cathay Pacific in scaling back operations. Richard Evans, Senior Advisor at Cirium, stated bluntly in his report: 'Further cuts are virtually inevitable.' Airlines across the Americas, Europe, and Asia-Pacific are all retrenching. U.S. carriers are feeling the most direct impact. United Airlines is cutting 5% of its annual capacity, with reductions extending through September; Delta Air Lines is absorbing an additional $2.5 billion in fuel costs this quarter—by raising fares and cutting approximately 3.5% of its capacity. Delta CEO Ed Bastian said: 'Any route operating at the margin—or failing to meet revenue expectations—will be subject to re-evaluation. This will be a test for the entire industry.' Lufthansa has taken the most aggressive action this week. Under dual pressure from ongoing strikes and the worsening fuel crisis, Europe’s largest airline has temporarily shut down its regional subsidiary CityLine, grounded 27 CRJ regional jets, and retired some aging Boeing 747s and Airbus A340 wide-body aircraft. Group CFO Till Streichert stated: 'Given the sharp rise in aviation fuel costs and persistent geopolitical instability, accelerating fleet and capacity adjustments is unavoidable.' Its Edelweiss brand has also suspended services to Denver and Seattle. Pressure is mounting across the Asia-Pacific region as well. Qantas has cut domestic capacity by 5% through the end of June, reduced flights to the U.S., and expects additional fuel expenses of approximately AUD 800 million (USD 575 million) in the second half of its fiscal year. Cathay Pacific will reduce flight frequency across the Asia-Pacific region by 2% from mid-May through the end of June; its low-cost subsidiary HK Express will cut capacity by as much as 6%.

Europe is forced to ground a large number of commercial passenger aircraft.

According to reports, German carrier Lufthansa is considering the temporary retirement of up to 40 aircraft; KLM Royal Dutch Airlines has already canceled around 160 flights; Scandinavian Airlines (SAS) has slashed over 1,000 scheduled flights—the largest reduction since the pandemic ended. Ryanair has warned that its summer flight volume could be cut by up to 10%. Aviation turbine fuel prices have more than doubled, forcing airlines worldwide to impose higher fuel surcharges on tickets and eliminate unprofitable routes. Experts from the International Energy Agency (IEA) and the Airports Council International–Europe (ACI Europe) have issued warnings: if the Strait of Hormuz remains closed to maritime traffic over the coming weeks, Europe faces a systemic shortage of jet fuel in May—and the summer tourism peak season could suffer severe disruption. The trigger for this chain reaction lies in European policy decisions. Today’s fuel crisis is a direct consequence of past European policies. Several years ago, multiple European countries imposed sweeping sanctions on Russia amid the Ukraine conflict; Russia responded by banning all European airlines from flying through its airspace. This retaliatory measure fundamentally reshaped global air logistics. European carriers can no longer use short-haul, cost-efficient routes over Russian airspace to reach Asia and the Middle East. Instead, all flights must now take longer northern or southern detours—significantly increasing flight distances and durations, and consequently driving up fuel consumption per flight.

Lufthansa Preparing to Ground Up to 40 Jets Due to Fuel Shortage, Spiegel Reports

Jun 26, 2026

Lufthansa plans to ground up to 40 aircraft due to a jet fuel shortage, according to a report by Spiegel.

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Lufthansa Preparing to Ground Up to 40 Jets Due to Fuel Shortage, Spiegel Reports

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