Deutsche Lufthansa AG, Europe’s largest airline group, has announced the cancellation of 20,000 short-haul flights from its summer schedule due to a sharp rise in fuel costs. The company said jet fuel prices have doubled since the start of the Iran war, making many routes unprofitable. The cancellations will reduce total flight capacity by about one percent and save approximately 40,000 tons of jet fuel.

According to Sky News, Lufthansa had already decided to shut down its regional unit CityLine and ground 27 older, fuel-intensive aircraft. The airline also plans to shift more flights to its lower-cost subsidiaries, City Airlines and Discover Airlines, to improve efficiency. Data from aviation analytics firm Cirium Limited shows that global airline capacity in May has fallen by about three percent as most major carriers cut flights.

Lufthansa further stated that it intends to reduce around 4,000 administrative jobs by 2030 to lower costs and enhance profitability.