Dhaka, April 18 -- Lufthansa has announced the immediate permanent grounding of all 27 operational aircraft of its regional subsidiary Lufthansa CityLine, accelerating the unit's previously planned 2028 shutdown.

The German national carrier cited a sharp rise in kerosene prices, which it said have more than doubled compared to pre-Iran War levels, along with mounting losses from ongoing labor disputes, as the primary drivers behind the decision.

The airline also announced it will withdraw four older Airbus A340-600s from its core long-haul fleet at the end of its summer schedule, with the winter schedule seeing short- and medium-haul operations trimmed by five additional aircraft.

Last week, Lufthansa was embroiled in wage disputes wit...