Lufthansa spokesperson Andreas Bartles said the company has taken into account two reasons before taking this decision. First, the demand is quite low - particularly among business travelers - to fill flights. Second, the company is finding it tough to convert Venezuelan currency, which uses multi-tiered exchange rates, which are quite complicated.
Venezuela's economy is heavily dependent on oil and the falling oil prices have affected the country's economy quite badly. The economic crisis has led to food rationing, medicine shortages, and unemployment. According to International Monetary Fund estimates, the unemployment rate in the Latin American nation would hit a staggering 21% next year.
Rolling blackouts have already been ordered by Venezuelan government to conserve power, and government employees have been asked to report for work only twice a week.
The economic crisis in the country has caused concern for many international companies. Last year, multiple air carriers - including U.S.-based Delta (DAL) and American Airlines (AAL) as well as Air Canada and Europe-based Alitalia - announced they were planning to reduce or suspend Venezuelan flights.
Soda company Coca-Cola also recently announced that it is temporarily stopping production in the country due to shortage of sugar in the country.