A "luxury" can mean something like a fine watch or car: something expensive, something everyone would like to have, something nobody actually needs.
"We don't have that luxury" is an idiomatic phrase that's often used by an authority when turning down a request. Instead of saying "no," the authority can say "I'd like to, but I can't," and one way to say it is "we don't have that luxury.
Calling something a "luxury" is saying that it is not needed, that it is a crazy dream, it's unrealistic. It is contrasting the "luxury" with harsh reality. "Don't be silly." "We don't have that luxury."
Here, the idea is that responding only to what has actually happened, and hoping that it is the last, would be nice--a "luxury"--but impossibly unrealistic.