Berlin, April 22 -- Germany's Lufthansa Group has announced the cancellation of 20,000 short-haul flights through October as it grapples with sharply rising jet fuel prices and potential fuel shortages in Europe linked to the ongoing conflict involving Iran.

The airline said 120 daily flights were already canceled starting Monday, with reductions continuing through the end of May. Lufthansa, which also operates SWISS, Austrian Airlines, and other carriers, estimates the move will save around 40,000 metric tons of jet fuel, German media reported.

The airline has also announced structural changes, including the winding down of its CityLine unit, as part of broader efforts to manage rising operational expenses. The group described the move a...