Deutsche Lufthansa AG is preparing for a summer where some nonstop flights may no longer stay nonstop.
The German airline is drawing up contingency plans for possible fuel shortages linked to the siege of the Strait of Hormuz. The plans could include adding refuelling stops on long-haul routes if fuel is unavailable at destination airports.
“Through the end of June, we expect fuel supplies — especially at our hubs — to remain fully secure,” Bloomberg quoted Chief Financial Officer Till Streichert as saying during an earnings-related call Wednesday. “At the same time, we are preparing for alternative scenarios should that situation change.”
Streichert said Lufthansa may introduce refuelling stops on selected flights to Asia or Africa if airports at the destination face fuel supply issues.
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Also Read| Lufthansa launches new premium onboard experience across all long-haul flights
The airline has already dealt with similar disruptions in recent weeks.
“We do occasionally see isolated cases where airports run out of fuel,” Chief Executive Officer Carsten Spohr said. “In Cape Town, for example, there was no fuel available a few weeks ago, so we stopped in Windhoek on the way back. Situations like that happen from time to time, and our teams have contingency plans in place.”
Lufthansa is also using “tankering”, where aircraft carry extra fuel on outbound flights to cover the return journey. However, European Union regulations limit the practice and it is mainly used on short-haul routes.
“Venice was an example a few weeks ago,” Spohr said. “They didn’t have fuel for a day or two, so our flights to Venice were loaded with enough fuel for the return journey, as well.”
Alongside operational changes, Lufthansa is increasing cost controls to manage rising fuel expenses. The airline said full-year earnings are still expected to be “significantly above” last year’s level despite higher fuel prices and labour disruptions.
The company plans to offset an additional €1.7 billion in fuel costs through higher ticket prices, network adjustments and cost savings. Measures include a hiring freeze for non-operational roles and a review of project spending.
Lufthansa has also shut down its regional subsidiary CityLine.
The German airline is drawing up contingency plans for possible fuel shortages linked to the siege of the Strait of Hormuz. The plans could include adding refuelling stops on long-haul routes if fuel is unavailable at destination airports.
“Through the end of June, we expect fuel supplies — especially at our hubs — to remain fully secure,” Bloomberg quoted Chief Financial Officer Till Streichert as saying during an earnings-related call Wednesday. “At the same time, we are preparing for alternative scenarios should that situation change.”
Streichert said Lufthansa may introduce refuelling stops on selected flights to Asia or Africa if airports at the destination face fuel supply issues.
(Join our ETNRI WhatsApp channel for all the latest updates)
Also Read| Lufthansa launches new premium onboard experience across all long-haul flights
The airline has already dealt with similar disruptions in recent weeks.
“We do occasionally see isolated cases where airports run out of fuel,” Chief Executive Officer Carsten Spohr said. “In Cape Town, for example, there was no fuel available a few weeks ago, so we stopped in Windhoek on the way back. Situations like that happen from time to time, and our teams have contingency plans in place.”
Lufthansa is also using “tankering”, where aircraft carry extra fuel on outbound flights to cover the return journey. However, European Union regulations limit the practice and it is mainly used on short-haul routes.
“Venice was an example a few weeks ago,” Spohr said. “They didn’t have fuel for a day or two, so our flights to Venice were loaded with enough fuel for the return journey, as well.”
Alongside operational changes, Lufthansa is increasing cost controls to manage rising fuel expenses. The airline said full-year earnings are still expected to be “significantly above” last year’s level despite higher fuel prices and labour disruptions.
The company plans to offset an additional €1.7 billion in fuel costs through higher ticket prices, network adjustments and cost savings. Measures include a hiring freeze for non-operational roles and a review of project spending.
Lufthansa has also shut down its regional subsidiary CityLine.
