Germany’s largest airline, Lufthansa, plans to significantly reduce its domestic flight network, cutting up to 100 weekly connections within Germany. The move follows a sharp rise in taxes and operating costs that, according to the company, have doubled since 2019.
Lufthansa CEO Carsten Spohr confirmed that the carrier is reviewing its short-haul operations and may withdraw from routes that are no longer financially sustainable. “Without a reduction in location-related costs, further cuts will be unavoidable,” he warned in an interview with WELT am Sonntag.
Domestic flying no longer profitable
The airline is particularly affected by Germany’s high aviation taxes and environmental levies, which have driven up ticket prices and squeezed profit margins on shorter routes. Unlike international flights, domestic connections have struggled to return to pre-pandemic levels.
According to Spohr, routes such as Munich–Münster/Osnabrück and Munich–Dresden are among those under review. These connections currently operate at a loss, and the company may cancel them as early as summer 2026 if conditions do not improve.
Business travel slump and the rise of video meetings
The decline in business travel remains one of the biggest structural challenges for airlines worldwide. Lufthansa reports that corporate passenger numbers are still well below pre-COVID figures.
The shift toward remote work and video conferencing — accelerated during the pandemic — has permanently changed travel behavior, particularly within Germany, where many companies now conduct meetings online instead of flying staff between cities.
While international routes have largely recovered thanks to tourism and global business demand, domestic flights continue to lag behind. This imbalance has led Lufthansa to focus more on long-haul and European connections, where demand remains robust.
Political pressure over aviation costs
The German aviation sector has repeatedly warned the federal government about the growing tax burden and airport fees. In addition to passenger taxes, airlines face rising CO₂ charges and airport service costs, making domestic operations less competitive compared to rail.
Lufthansa argues that high regulatory and environmental costs, combined with reduced demand, have made many short-haul routes uneconomical. Industry associations have called on Berlin to reconsider its tax policy, stressing that without relief, regional connectivity will continue to decline.
Shift toward sustainability and efficiency
Analysts say Lufthansa’s decision aligns with broader European trends: national carriers are scaling back short-haul flights to meet climate targets and to encourage passengers to use high-speed rail alternatives.
In Germany, partnerships between Lufthansa and Deutsche Bahn already allow travelers to book “AirRail” tickets that combine train and air travel — a model likely to expand as short routes disappear.
While the company insists it remains committed to its domestic market, Lufthansa’s strategy increasingly reflects a new reality: fewer planes in the air, more focus on efficiency and long-distance travel.
