Lufthansa Shuts Down CityLine Subsidiary Immediately as Regional Fleet Retires

Bombardier CRJ-900LR D-ACKC Lufthansa Regional (Lufthansa CityLine)Bombardier CRJ-900LR D-ACKC Lufthansa Regional (Lufthansa CityLine) | Rob Vogelaar

Aviation News – Lufthansa has announced the immediate closure of its regional subsidiary Lufthansa CityLine, permanently grounding its entire fleet of 27 Bombardier CRJ-900 aircraft. The decision, effective April 18, 2026, comes as the German flag carrier moves to cut losses amid surging fuel prices and persistent labor disputes.

The shutdown of CityLine, which was originally scheduled for 2028, was accelerated by two years following a sharp spike in kerosene costs and recent industrial action. The subsidiary, which has operated since 1958, managed an extensive network of regional feeder flights to smaller European destinations from hubs in Frankfurt and Munich. By halting these loss-making operations now, the Lufthansa Group aims to stabilize its financial position and streamline its short-haul strategy.

The move significantly impacts connectivity in Central and Eastern Europe, where CityLine served as a vital link for lower-demand routes. Hundreds of flights have already been removed from booking systems, particularly affecting routes to Ljubljana, Belgrade, and Rijeka. While Lufthansa mainline and other partners like Air Dolomiti will absorb some traffic, the immediate withdrawal of 27 aircraft represents a substantial capacity reduction during the peak travel season.

The Bombardier CRJ-900 fleet is being retired because the aircraft are nearing the end of their technical operational capability and have become increasingly expensive to maintain. These regional jets are significantly less fuel-efficient than newer models, making them unsustainable in a market where fuel prices have more than doubled. The airline will transition much of its regional flying to the newly established Lufthansa City Airlines, which utilizes more modern and cost-efficient aircraft.