Commercial Aviation
Lufthansa Considers Cutting 100 Weekly Domestic Flights in Germany
Lufthansa plans to cut up to 100 weekly domestic flights due to rising costs and competition from high-speed rail in Germany.
The German aviation landscape is facing a period of significant turbulence. Deutsche Lufthansa AG, the nation’s flag carrier, is currently evaluating a substantial reduction of its domestic flight network. The Airlines has indicated that as many as 100 weekly flights within Germany could be on the chopping block, a move that signals deep-seated economic pressures and a shifting travel paradigm. This potential decision is not an isolated event but rather a symptom of a broader set of challenges confronting the industry, from escalating operational costs to fundamental changes in post-pandemic travel behavior.
At the heart of the issue are what Lufthansa’s CEO, Carsten Spohr, describes as unsustainable financial burdens. In a statement to the German newspaper Welt am Sonntag, Spohr highlighted that the operational costs for domestic flights have effectively doubled since 2019. This dramatic increase is attributed largely to rising aviation taxes and Airports fees, creating an environment where many short-haul routes are no longer economically viable. The airline is now at a crossroads, forced to weigh national connectivity against financial sustainability, with a final decision expected before the finalization of the upcoming summer flight schedule.
This situation extends beyond a single airline’s balance sheet. It reflects a complex interplay of factors, including fierce competition from Germany’s expanding high-speed rail network and a structural decline in business travel. As companies continue to embrace remote work and digital meetings, the demand for domestic air travel has failed to rebound to pre-pandemic levels. We are witnessing a potential reshaping of domestic travel in one of Europe’s largest economies, where the future balance between air and rail hangs in the balance, heavily influenced by government policy and evolving consumer preferences.
The primary driver behind Lufthansa’s consideration to cut domestic routes is a severe and sustained economic squeeze. The airline’s leadership has been vocal about the financial unsustainability of certain routes, pointing directly at external cost factors that are largely outside of their control. This isn’t just about optimizing schedules; it’s a response to a financial reality that has made short-haul flights within Germany increasingly unprofitable.
According to CEO Carsten Spohr, the core of the problem lies in the dramatic inflation of operating expenses. “The costs of flight operations within Germany have doubled since 2019,” he stated, a stark figure that underscores the severity of the situation. These costs are not primarily linked to fuel or labor but to what the airline terms “escalating aviation taxes and fees.” These government- and airport-imposed charges have created a high-cost environment for carriers operating within the country.
This financial strain is reflected in broader analyses of the company’s financial health. An Altman Z-Score of 1.16 places Lufthansa in the “distress zone,” a metric suggesting a tangible risk of financial difficulty. This context makes cost-cutting measures not just strategic but necessary. Routes that are operating at a loss, particularly those connecting major hubs like Munich to smaller regional airports such as Münster/Osnabrück and Dresden, are now under intense scrutiny. Without significant relief or a change in the cost structure, these connections are at risk.
The pressure is mounting as the German government’s fiscal policies have not provided the relief the aviation sector had hoped for. In a September 2025 statement, Jens Ritter, Head of Lufthansa Airlines, expressed “deep disappointment” with the draft budget for 2026, which failed to deliver on previously discussed support for the industry. This has left airlines like Lufthansa feeling cornered, with few options other than to reduce their exposure to unprofitable markets.
Compounding the cost issue is a fundamental shift on the demand side of the equation. The post-COVID recovery for domestic air travel has been notably sluggish, largely due to a permanent change in business travel habits. The widespread adoption of video conferencing and remote work has fundamentally altered the calculus for corporate travel, with many companies reducing their travel budgets and encouraging virtual meetings for what would have previously been a day trip by plane. This structural decline in high-yield business passengers has a disproportionate impact on domestic routes, which have historically relied heavily on this segment. With fewer business travelers filling seats, the financial viability of these flights diminishes rapidly. The result is a market where both costs are rising and a key revenue stream is shrinking, creating an unsustainable business model for many short-haul connections.
Lufthansa’s response is to pivot towards more profitable segments of its business. The airline has been increasingly focusing on its international and long-haul routes, where demand has proven more robust and the competitive landscape is different. This strategic shift, while logical from a business perspective, raises important questions about the future of regional connectivity within Germany and the role of the national carrier in serving smaller domestic markets.
Lufthansa’s potential route cuts are not happening in a vacuum. They are the result of a perfect storm where internal cost pressures are magnified by external competitive forces and a challenging regulatory environment. The rise of a formidable alternative in high-speed rail and a contentious relationship with government policymakers are two critical factors shaping the airline’s strategic decisions.
“Without a reduction in the strain on the location, further cancellations will be unavoidable.” – Carsten Spohr, CEO of Lufthansa
One of the most significant competitive pressures on domestic aviation in Germany comes from the ground. The country’s highly efficient and expanding high-speed rail network, operated by Deutsche Bahn, has become a formidable competitor. For many city-to-city journeys, train travel is not only more environmentally friendly but often faster and more convenient when considering total travel time, including airport transfers and security checks.
This has steadily eroded the demand for short-haul flights, particularly between major urban centers. Recognizing this trend, Lufthansa and Deutsche Bahn have already established “AirRail” partnerships. These agreements allow for integrated ticketing, combining a train journey with a long-haul flight from a major hub like Frankfurt or Munich. This model suggests a future where airlines and rail operators collaborate more, with trains acting as feeders for international flights rather than competing directly on domestic legs.
The potential cancellation of up to 100 weekly flights can be seen as an acceleration of this trend. It represents a strategic retreat from routes where the airline can no longer effectively compete with rail, choosing instead to focus its resources on markets where air travel retains a distinct advantage. This evolution points towards a more integrated and specialized domestic transport system in Germany.
It is crucial to note that Lufthansa is not alone in its struggles within the German market. The high operational costs are affecting all carriers. Competitor Ryanair, for example, has also announced plans to cut its winter capacity in Germany, explicitly citing the same cost pressures from high airport fees and taxes. This demonstrates that the issue is systemic to the German aviation market rather than specific to one airline’s operational model.
Industry associations have repeatedly warned the German federal government about the consequences of the increasing tax burden, arguing that it hampers competitiveness and threatens regional connectivity. The airlines contend that without policy adjustments, Germany risks becoming an increasingly expensive and unattractive market for aviation, leading to further reductions in service that could disproportionately affect smaller cities and regional economies. The ongoing debate places the German government in a pivotal role. Its policies on aviation taxes and fees are a central point of contention and a key determinant in the airlines’ decisions. The outcome of this standoff will not only shape the future of Lufthansa’s domestic network but will also send a clear signal about the government’s long-term vision for the balance between air, rail, and regional economic support.
The potential withdrawal of 100 weekly Lufthansa flights marks a critical juncture for domestic travel in Germany. This is more than a simple schedule adjustment; it is a reflection of deep, structural shifts in economics, technology, and consumer behavior. The decision, whichever way it falls, will have lasting implications for regional connectivity, the balance between different modes of transport, and the role of government in shaping national infrastructure. It is a clear signal that the old models of short-haul aviation are being rigorously tested, and not all will survive.
Looking ahead, we are likely to see a continued integration of air and rail travel, with airlines focusing on their core strength in long-haul and international flights while ceding more domestic ground to high-speed trains. This could lead to a more efficient and sustainable national transport network, but it also risks leaving smaller communities with fewer travel options. The final decision from Lufthansa will serve as a major indicator of the future trajectory, highlighting whether the path forward is one of managed transition or disruptive change for Germany’s domestic travel ecosystem.
Question: Why is Lufthansa considering cutting domestic flights? Question: How many flights could be cut and when might this happen? Question: Is this problem unique to Lufthansa? Sources: Bloomberg
The Economic Squeeze: Why Domestic Flights Are on the Chopping Block
Soaring Costs and Financial Pressures
The Shifting Landscape of Post-Pandemic Travel
A Confluence of Factors: Competition and Government Policy
The Rise of High-Speed Rail
An Industry-Wide Challenge
The Future of German Domestic Travel
FAQ
Answer: The primary reasons are soaring operational costs, particularly aviation taxes and airport fees, which have reportedly doubled since 2019. This is combined with a slower-than-expected recovery in travel demand, especially from the business sector, making many domestic routes financially unsustainable.
Answer: Lufthansa is considering the cancellation of up to 100 domestic flights per week. If economic conditions do not improve, these changes could be implemented as early as the summer 2026 schedule.
Answer: No, this is an industry-wide issue in Germany. Other airlines, such as Ryanair, have also announced capacity cuts, citing similar pressures from high fees and taxes. This indicates a broader challenge within the German aviation market.
Photo Credit: Reuters
Aircraft Orders & Deliveries
Vietjet Expands Fleet with 22 New Aircraft by Year-End 2025
Vietjet adds 22 aircraft including Airbus, Boeing, and COMAC models to boost capacity for Lunar New Year and international expansion.
This article is based on an official press release from Vietjet Aviation Joint Stock Company and supplementary industry research.
Vietjet has officially launched the most significant fleet expansion in its operating history, receiving a total of 22 new Commercial-Aircraft during the 2025 year-end festive season. According to the airline’s latest announcement, this strategic influx of capacity is designed to meet surging travel demand for Christmas and the upcoming Lunar New Year (Tet) 2026, while simultaneously supporting a broader international network growth strategy.
The delivery of these aircraft comes at a critical time for the global aviation industry, which continues to grapple with severe supply chain disruptions and delivery delays from major Manufacturers. By securing 22 aircraft in a condensed timeframe, Vietjet aims to bolster its operational resilience and capture market share during the peak holiday travel window.
The 22-aircraft addition comprises a mix of direct manufacturer deliveries and strategic wet leases, diversified across Airbus, Boeing, and COMAC models. This diversification allows the airline to serve high-density trunk routes, international connections, and niche island destinations effectively.
A significant portion of the expansion involves seven new Airbus A321neo ACF (Airbus Cabin Flex) aircraft. These units are intended to serve as the backbone of Vietjet’s Vietnam-based operations. On December 4, 2025, the Airlines welcomed the latest of these jets, registered as VN-A580, at Tan Son Nhat International Airport.
According to Vietjet, the A321neo ACF configuration offers up to 240 seats and provides substantial environmental benefits, including at least 16% fuel savings, up to 75% noise reduction, and 50% fewer emissions compared to previous generation aircraft.
In a major milestone for its subsidiary operations, Vietjet has integrated nine Boeing 737-8 aircraft into the Vietjet Thailand fleet. The first of these, registered HS-VZA, arrived in Bangkok on November 23, 2025. This delivery marks the commencement of Vietjet’s historic order for 200 Boeing aircraft.
These aircraft are initially slated for the Bangkok–Chiang Mai route, with plans to expand into international service connecting Bangkok to Cam Ranh, Vietnam, later in December 2025. To address immediate peak season capacity needs, the airline has also secured four wet-leased aircraft, likely Airbus A320s based on historical partnership patterns with providers such as Freebird Airlines. These “wet leases” include aircraft, crew, maintenance, and insurance, allowing for immediate deployment.
Additionally, industry reports indicate the inclusion of two COMAC C909 (formerly ARJ21) aircraft, wet-leased from Chengdu Airlines. These specialized regional jets are deployed specifically for routes connecting Hanoi and Ho Chi Minh City to Con Dao, an island destination with runway limitations that restrict larger jet operations.
Vietjet’s ability to secure such a large volume of aircraft amidst a global shortage is a focal point of their current operational narrative. The airline emphasizes that this move is not merely about holiday capacity but about long-term positioning in the Asian market.
“In a global context of aircraft shortages and disrupted supply chains… Vietjet’s ability to receive 22 modern aircraft in less than one month strongly affirms its reputation, strong financial capacity, and standing in the international market.”
, Vietjet Press Statement, December 5, 2025
From our perspective at AirPro News, this expansion highlights a divergence between Vietjet and many of its regional competitors who are currently scaling back due to engine recalls and delivery delays. By leveraging a mixed fleet strategy, utilizing both Airbus and Boeing, alongside wet leases, Vietjet is effectively hedging against single-source supply chain risks.
Financially, the market appears to be responding positively to this aggressive growth. Market data indicates that Vietjet Aviation JSC (VJC) stock is trading strongly, hovering around 207,500 VND as of early December 2025. With reported revenues of approximately $2 billion USD in the first nine months of 2024, the carrier has the capital required to sustain these leases and acquisitions. The move to secure capacity now positions them to maximize yields during the Tet 2026 period, where demand typically outstrips supply.
The new fleet will immediately support the airline’s Lunar New Year schedule. Vietjet has opened sales for approximately 2.5 million tickets for the Tet 2026 travel period (January–February). The additional capacity will allow for increased frequencies on key domestic trunk routes connecting Ho Chi Minh City to Hanoi, Da Nang, Vinh, and Thanh Hoa.
Internationally, the expansion supports new routes targeting North Asia and Oceania. Beyond the new Bangkok–Cam Ranh service, the airline is progressing with plans for routes to Japan, South Korea, and a long-haul connection between Ho Chi Minh City and Auckland, New Zealand, utilizing its wide-body A330 fleet.
Vietjet Secures 22 New Aircraft in Historic Year-End Fleet Expansion
Breakdown of the Fleet Expansion
Airbus A321neo ACF: The Core Growth
Boeing 737-8 (MAX) for Vietjet Thailand
Strategic Wet Leases and Niche Operations
Operational Strategy and Market Impact
AirPro News Analysis
Route Expansion and Holiday Readiness
Sources
Photo Credit: Vietjet
Route Development
Thailand Increases International Airport Departure Fee by 53 Percent
Airports of Thailand will raise the international departure Passenger Service Charge to 1,120 Baht in 2026, funding new terminal projects.
International travelers flying out of Thailand’s major hubs will soon face significantly higher costs. According to reporting by the Bangkok Post, Airports of Thailand (AoT) is set to increase the Passenger Service Charge (PSC), commonly known as the airport tax, by 53% for international departures. The new rate is expected to take effect in early 2026.
The increase will raise the fee from its current level of 730 Baht to 1,120 Baht (approximately $33 USD). This adjustment applies specifically to the six major international airports managed by AoT, including the country’s primary gateway, Suvarnabhumi Airport (BKK). While the hike is substantial for international travelers, fees for domestic flights at these same hubs will remain unchanged at 130 Baht.
The Bangkok Post reports that the new pricing structure is designed to bolster revenue for infrastructure projects without relying on state budgets. The increase of 390 Baht represents a sharp rise in the cost of exiting the country via its busiest terminals.
Based on the details provided in the report, the 1,120 Baht rate will apply to international departures from the following six AoT-operated airports:
It is important to distinguish this major hike from a separate, smaller adjustment occurring at regional airports. According to market research data, airports operated by the Department of Airports (DOA), such as Krabi and Surat Thani, are seeing a minor increase from 400 Baht to 425 Baht. However, the headline-grabbing 53% jump is exclusive to the major AoT hubs.
While initial headlines suggested the change could happen “early next year,” the regulatory timeline points toward the first quarter of 2026. As noted in industry analysis, a four-month notice period is typically required following ministerial approval. Consequently, travelers booking flights for late 2025 may avoid the fee, but those traveling from April 2026 onward will likely see the charge reflected in their ticket prices.
The primary driver behind this aggressive pricing strategy is the need for capital to fund massive expansion projects. AoT has stated that the additional revenue, projected to be around 10 billion Baht annually, will be directed toward the construction of the new South Terminal at Suvarnabhumi Airport.
Additionally, the funds are earmarked for upgrading safety systems and modernizing passenger facilities, such as automated check-in kiosks. By increasing the PSC, AoT aims to maintain financial independence, self-financing these upgrades rather than drawing from government coffers.
“AoT aims to self-finance these investments rather than relying on government budgets.”
, Summary of AoT strategy via Industry Research
The announcement has triggered mixed reactions across the aviation and financial sectors. Investors have responded positively to the news; AoT’s share price reportedly surged 11% following the announcement, as analysts view the fee hike as a reliable mechanism to offset costs associated with recent duty-free concession adjustments.
However, the tourism and airline sectors have expressed caution. The International Air Transport Association (IATA) has previously warned that increasing aviation fees can dampen demand, particularly among price-sensitive travelers. This concern is amplified by the potential reintroduction of a 300 Baht “tourism tax,” which, if combined with the new airport tax, could add roughly $42 USD in government fees to a standard round-trip ticket.
At AirPro News, we analyzed how this new rate positions Thailand against its regional competitors. With a new rate of 1,120 Baht (approx. $33), Thailand is moving from a mid-tier price point to one of the more expensive hubs in Southeast Asia.
Based on current 2025/2026 estimates, the new Thai rate compares as follows:
While Thailand remains more affordable than premium hubs like Singapore Changi, it risks losing its competitive edge against lower-cost neighbors like Vietnam and Malaysia. For budget travelers, a $33 exit tax, embedded invisibly in the ticket price, may not be immediately obvious, but it contributes to the overall perception of rising travel costs in the Kingdom.
Will I have to pay this fee at the airport counter? Does this affect domestic flights? When does the new rate start?
Breakdown of the New Fees
Affected Airports
Timeline for Implementation
Rationale: Funding the South Terminal
Market Reaction and Regional Context
AirPro News Analysis: Regional Price Competitiveness
Frequently Asked Questions
No. The Passenger Service Charge (PSC) is almost always included in the price of your airline ticket. You will see the total fare increase, but you will not typically need to pay cash at the airport.
No. The tax for domestic flights at AoT airports remains at 130 Baht.
The new rate of 1,120 Baht is expected to take effect in early 2026, likely within the first quarter, following the mandatory notice period.
Sources
Photo Credit: Ken Kobayashi – Bangkok’s Suvarnabhumi Airport
Route Development
GSP Opens $97 Million Parking and Rental Car Facility
Greenville-Spartanburg International Airport unveils a $97M parking garage and rental car facility to support over 3 million passengers annually.
Greenville-Spartanburg International Airport (GSP) has officially opened its new Parking Garage C and Consolidated Rental Car Facility (CONRAC), a major infrastructure milestone designed to accommodate surging passenger traffic in the Upstate region. According to an official announcement from the airport, the facility opened to the public on December 2, 2025, following a ribbon-cutting ceremony.
The $97 million project represents a significant investment in the airport’s operational capacity. Located adjacent to the terminal building and connected via a covered walkway, the new structure adds 1,500 parking spaces to the airport’s inventory. The facility is designed to streamline the travel experience by centralizing rental car operations and expanding public parking options as passenger numbers exceed 3 million annually.
The new facility is a dual-purpose structure that addresses two critical needs: public parking availability and rental car logistics. The garage is split evenly, designating 750 spaces for public parking and 750 spaces for “ready-return” rental cars. This consolidation moves rental car pickup, drop-off, and transaction counters into a single location directly next to the terminal, eliminating the need for remote shuttles for most operations.
According to project details released by GSP, the facility includes a Customer Service Building (CSB) featuring a modern transaction lobby. Additionally, a “Quick Turn-Around” (QTA) area has been integrated to support rental car companies with on-site fueling, car washes, and light maintenance bays. This infrastructure is intended to speed up vehicle turnaround times, ensuring inventory is available for arriving passengers.
Dave Edwards, President and CEO of GSP, emphasized the necessity of the project in light of recent traffic records:
“With more than three million passengers traveling through GSP over the past year, this facility will help us better serve our customers and prepare for continued growth in 2026. Opening Garage C allows us to provide an unprecedented level of service while providing the convenience, efficiency, and amenities our community expects.”
The project, designed by Greenville-based architecture firm LS3P and managed by Brasfield & Gorrie, incorporates technology aimed at reducing friction for travelers. The garage features “Park Assist” technology, a guidance system that uses visual indicators to help drivers locate open spots quickly. This system is expected to reduce the time drivers spend circling for parking, thereby lowering vehicle emissions.
Aesthetically, the garage was designed to complement the existing “campus feel” of the main terminal, utilizing similar glass, steel, and stone materials. Ben Barfield, Vice President and Division Manager at Brasfield & Gorrie, noted the complexity of constructing the facility while maintaining airport operations:
“Delivering this facility safely and efficiently while the airport remained fully operational was a true team effort… We are proud to have worked alongside GSP and our project partners to deliver a facility that enhances the traveler experience.”
The completion of the CONRAC facility at GSP reflects a broader trend among mid-sized North American airports. By consolidating rental car operations into a dedicated structure adjacent to the terminal, airports can significantly reduce curb congestion. Removing rental car shuttle buses from the main roadway loops improves traffic flow for private pickups and ride-share services, a critical operational improvement as GSP prepares for future expansions, including a potential Concourse B expansion projected for the late 2020s. This infrastructure upgrade is a cornerstone of GSP’s broader Capital Improvement Program. The airport serves as a major economic engine for the region, with a recent study citing approximately $4 billion in annual economic output and support for nearly 20,000 jobs. The opening of Garage C is described by airport officials as an “enabling project,” freeing up space and infrastructure capacity required for future terminal and roadway improvements.
GSP Unveils $97 Million Parking and Rental Car Facility to Support Record Growth
Enhancing Infrastructure and Efficiency
Smart Technology and Design
AirPro News Analysis
Economic Impact and Future Plans
Sources
Photo Credit: GSP
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