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Fly to Luxembourg in June, July or August when the weather is at its finest. The days are beautifully warm and just right for exploring Luxemburg's hilltop castles and vibrant city centre. Rain is always a possibility, but the chances of a downpour decrease in summer. This is also the season for outdoor events with festivals such as National Day, Fête de la Musique and the Medieval Festival.
For the best chance of getting a good deal on flights and hotels and having more of the city to yourself, fly to Luxembourg in May or September. The weather will be mild (although you may have to contend with some rain) and the queues for attractions will be shorter. There's a handful of festivals to enjoy such as Pricetemp Music Festival and the Grevenmacher Wine and Grape Festival.