German flag carrier Lufthansa Group has announced its new short-haul subsidiary City Airlines will start operations in the summer of 2024.

City Airlines was founded in Munich in 2022 with the aim of expanding the European route network operated by the Lufthansa Group.

Lufthansa Group said the new airline will work alongside the Lufthansa CityLine, forming part of the company’s extensive portfolio of more than 300 affiliated companies.

According to Lufthansa, recruitment for operational staff will commence next month (November 2023). The company stated that there are ongoing talks with stakeholders to agree on conditions for competitive and secure jobs.

City Airlines managing director Jens Fehlinger emphasised job creation in Germany: "With City Airlines, we want to create prospects for the coming decades and secure sustainable jobs in Germany. This is the only way for us to grow and sustainably strengthen the hubs in Munich and Frankfurt."

The newly founded airline will operate flights from Munich and Frankfurt hubs.

Lufthansa has indicated that if any present workers choose to move to City Airlines, negotiations can take place.

While City Airlines will begin operations with Airbus A319 aircraft, Lufthansa Group is also considering deploying Airbus A220 or Embraer aircraft.

The introduction of this new airline will boost the group's expansion objectives and demonstrate its success in the financial year 2022.

According to Lufthansa's annual report for 2022, air travel demand increased significantly, with the carrier receiving 102 million passengers in 2022, over twice (47 million) more than the previous year.