Since many airlines are reducing flights due to high fuel costs, I assume this is Caren's attempt to kill two birds with one stone. They would likely reduced the schedule by the same margin anyway.

How does this work in relations to 261/2004 compensations / right to care? Are those claims with Lufthansa or Lufthansa Cityline? Normally the operating carrier rule applies but since these are effectively wet leases, I'm not sure. With LH, I wouldn't be surprised if they somehow tried to dodge this but pretending Cityline owes the money and then letting Cityline go bankrupt (after they transfer planes of course) before any claims get to court. So this may be a way for them to cancel less than 14 days in advance and not pay compensation anyway.. Especially if they strategically cancel those to markets with stricter courts or easier claim procedures (meanwhile the other flights get transfered to mainline).