Lufthansa, Germany’s national flag carrier, is set to cut around 100 domestic flights from its upcoming summer schedule due to rising aviation taxes and fees in the country. According to the company’s chief executive, Carsten Spohr, government-imposed costs for airlines in Germany have roughly doubled since 2019, prompting the decision. The increased costs are also driving a shift in the airline’s passenger mix towards premium cabins, as higher taxes and fees on economy tickets accelerate this trend.

The complaints from Lufthansa echo long-standing grievances from airline executives about Germany’s aviation cost base, which they argue hinders competitiveness. The German aviation industry association has warned that the country’s viability as a global hub is in crisis, citing state-imposed costs since 2019. The association estimates that the financial burden on the industry will rise by €1.1 billion in 2025, resulting in the loss of 10,000 jobs and €4 billion in annual economic value.

Lufthansa has been facing significant challenges, including strikes, delayed aircraft deliveries, and underperformance at its mainline business, leading to a revision of its financial guidance twice in the last year. The company has also announced plans to cut 4,000 administrative jobs by 2030, with the majority of the cuts taking place in Germany. The German aviation industry association has noted that airlines are now avoiding Germany, with the number of aircraft stationed in the country by European point-to-point carriers falling from 190 to 130.

The reduction in domestic flights is expected to be around 100 per week, which could be eliminated again next summer if the location costs are not reduced, according to Spohr. The move highlights the need for a reduction in state-imposed costs to maintain the competitiveness of the German aviation industry. The industry’s concerns and the impact of rising costs on airlines and the economy will likely be closely monitored in the coming months.