Lufthansa Shuts Down CityLine Unit on Fuel Costs, Strikes

Deutsche Lufthansa AG is shutting down regional unit Lufthansa CityLine and grounding older, fuel-guzzling aircraft as part of a broader strategy to cut costs amid soaring oil prices and walkouts by pilots and cabin crew.

Europe’s largest airline group will remove CityLine, whose staff is currently on strike, and its 27 aircraft from operations starting April 18, according to a statement. The flag carrier also plans to retire some long-haul jets — including four Airbus SE A340-600s and two Boeing Co. 747-400s — by the end of its summer schedule.