(April 1): Deutsche Lufthansa AG is readying plans to ground planes in case demand drops because of the war in the Middle East.
Europe’s biggest aviation group has assigned teams to develop crisis responses that differ in severity, CEO Carsten Spohr told employees Tuesday, according to a spokesman for Lufthansa.
The arrangements could entail grounding as many as 40 aircraft, or 5% of the airline’s capacity, the spokesman said.
Lufthansa shares rose as much as 8.1% in early Wednesday trading in Frankfurt. They had fallen about 16% for the year through Tuesday’s close.
Handelsblatt first reported Lufthansa’s preparations.
The crisis plans are being prompted not just by the escalating price of jet fuel but also its possible scarcity.
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The effective closing of the Strait of Hormuz has stranded a significant proportion of global jet fuel shipments and led refineries in Asia to cut production.
Europe is the main importer of jet fuel — including kerosene — from the Persian Gulf, with supplies from that region accounting for about half of European Union and UK imports, according to Vortexa data compiled by Bloomberg News.
In the early days of the war, Lufthansa expanded its flight offerings for the summer, citing short-term shifts and increases in demand for tourist and business travel. Additional weekly flights include destinations such as Chennai and Bengaluru in India, the company said Tuesday.
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