German flagship carrier Lufthansa has become the first major airline company to ground planes due to high jet fuel costs, as the aviation industry counts the cost of the Iran war.
Lufthansa also cited ongoing labor disputes behind the decision that came a day after celebrating the group's 100th anniversary.
The Iran war has sent jet fuel prices soaring, upending the global aviation industry and forcing airlines to raise fares, curb growth plans and rethink forecasts.
In a first step starting on Saturday, Lufthansa will permanently remove 27 of its smaller regional jets, known as CRJs, operated by Lufthansa subsidiary CityLine, to further reduce losses at the loss-making airline, according to a statement.
These planes are at the end of their operational capabilities and are comparatively more expensive to operate.
In a second phase starting at the end of October, six long-haul jets from Lufthansa's core brand are to follow, namely four Airbus A340-600s and two Boeing 747-400 jumbo jets.
The final farewell to this aircraft type is planned for next year. In addition, Lufthansa plans to remove around five medium-haul aircraft from its fleet.
The company cited soaring kerosene prices and the costs from ongoing labor disputes as reasons for the cuts. Particularly inefficient aircraft would be taken out of operation early so that less kerosene would have to be bought on the open market, it said.
Based on the crude oil price, around 80% of the kerosene consumption of Lufthansa Group's passenger airlines is hedged, which is above average, according to the company.
Chief Financial Officer Till Streichert said the measures were unavoidable. Cuts that were planned anyway were being brought forward, he added. "The current crisis is now forcing us to implement this measure earlier."
Services on long-haul and short-haul routes in the rest of Lufthansa's network will also be reduced after the summer to make savings, the group said.
The company said its goal is to enable CityLine crews to find jobs within the Lufthansa Group. However, the pilots' union Vereinigung Cockpit and the cabin crew union UFO say the company's efforts are insufficient.
Lufthansa now wants to hold talks with CityLine's works partners on a reconciliation of interests and a social plan.
The aviation giant has been hit by a lengthy industrial dispute, with walkouts forcing hundreds of cancellations across Germany again on Thursday.
A ceremony marking the airline's centenary on Wednesday was marred by the ongoing strikes by cabin crew, after a separate dispute involving pilots brought operations to a standstill earlier this week.
The costs of fuel have been pushed up globally by higher crude oil prices due to the war in Iran.
