Several international carriers are accelerating cost-reduction and capacity-reduction measures and raising surcharges in light of rising jet fuel prices.
Airlines including Lufthansa Group, Qantas and Air India are taking steps to mitigate rising jet fuel prices, which have spiked since the start of the Iran War on Feb. 28. Such prices have more than doubled year over year, according to the International Air Transport Association.
Lufthansa Group
Lufthansa Group on Thursday said it was taking "accelerated capacity and fleet measures" to mitigate increased fuel prices as well as "additional burdens from labor disputes." Unions representing Lufthansa's pilots and cabin crew have called short-notice strikes this month.
The company said 27 operational aircraft of Lufthansa CityLine would be "permanently removed from the flight program" beginning this week. Those aircraft, Canadair CRJ models, "are nearing the end of their technical operational capability" and have comparatively high operating costs.
The company previously had considered the removal of CityLine, according to a statement by Lufthansa CFO Till Streichert.
Next, Lufthansa will reduce long-haul capacity with the reduction of six intercontinental aircraft at the end of the summer flight schedule. The last four Airbus A340-600 aircraft will leave the fleet in October, and two Boeing 747-400 aircraft will be grounded from October onward for the winter.
Third, for the 2026-2027 winter schedule, Lufthansa would reduce capacity "as part of the envisaged consolidation of short- and medium-haul traffic across six hubs of the Lufthansa Group" and "corresponds to five aircraft of the Lufthansa core brand."
Although Lufthansa is about 80 percent hedged for fuel purchases, the remaining 20 percent is purchased at "significantly increased market prices," according to the company. The steps taken will reduce that portion of fuel requirements by about 10 percent, it said.
Qantas
Australia-based carrier Qantas on Tuesday said it is making "international network changes, capacity adjustments and fare increases" to "mitigate the impact of the conflict in the Middle East," which has triggered the increase in oil prices.
Qantas said it has hedged about 90 percent of its second-half 2026 exposure in crude oil but is "largely exposed to movements in jet refining margins," which have increased from $20 per barrel in February to about $120.
The carrier continues to see strong demand to Europe, so Qantas has redeployed capacity from U.S. routes and its domestic network to increase service to Paris and Rome. The carrier has reduced its planned Q4 domestic capacity by about 5 percentage points. Affected Qantas and Jetstar customers are being contacted and offered alternative flights or a refund, according to the company.
Domestic capacity for the third quarter now is projected to be up 5 percent year over year for each Qantas and Jetstar, with fourth-quarter capacity down 1 percent for Qantas and flat for Jetstar. Qantas international capacity is expected to be up 8 percent for the third quarter, and up 9 percent for the fourth quarter compared with prior corresponding periods, while Jetstar international capacity for those periods now is projected to be down 4 percent and 7 percent, respectively.
Air India
While multiple carriers have increased fuel surcharges—also known as carrier-imposed surcharges—Air India is one of the few that has publicly announced them.
The carrier this month moved from a flat domestic surcharge of about $4.29 per flight to a distance-based surcharge. The shortest distances are now charged about $3.21 per flight, while the longest domestic flights are being charged $9.66 per segment.
Air India also has made changes to its international fuel charges. On March 18, the carrier increased the surcharge on flights to Europe to $125 from $100, and for North America and Australia to $200 from $150. However, on April 10, it raised them further. The fee for flights to Europe, including the U.K., now is $205, and is $280 on North America and Australian flights.