Eurowings examines short-time work and cuts flights as kerosene costs surge
The Lufthansa subsidiary is talking to the Federal Employment Agency about short-time work for winter. It has already dropped its first Dubai flights from Cologne and Stuttgart as kerosene costs run almost 250 million euros over budget this year.
Short-time work under review
Eurowings is checking whether the conditions for temporary short-time work in its German flight operations are in place for the winter. The Lufthansa subsidiary confirmed the review on Friday, 16 October, after Der Spiegel first reported the plan. A letter to staff, which Reuters obtained, says talks with the Federal Employment Agency are already under way. The letter does not say how many employees would be affected, and the airline has not put a figure on the possible scale of short-time work. A spokeswoman put the review in the airline's own words:
We are currently examining whether the conditions for temporary short-time work in German flight operations in winter are met.
Flight cuts and cost pressure
The first casualties are the Dubai connections from Cologne and Stuttgart, which had only just launched. Berlin will keep serving the Gulf hub, while further reductions are expected to hit individual frequencies rather than whole routes. The management letter says the airline will cut about 5% of its planned programme in total, alongside cuts in administration. Kerosene costs are the driver: the letter puts them almost 250 million euros over budget for this year. Focus reports that the price has at times more than doubled since the conflict began in early March, with a barrel costing 85 to 90 dollars before the conflict and 209 dollars in early April. Air Baltic and Volotea both filed for creditor protection in September.
- Kerosene price reaches 209 dollars a barrel in early April, per Focus
- Brent crude climbs back above 100 dollars a barrel
- Eurowings confirms it is examining short-time work for winter
Unions respond
Der Spiegel reported that Vereinigung Cockpit, the pilots' union, and Ver.di, which represents cabin crew, both confirmed the review to the magazine. Ver.di wants a say in how short-time work is designed and insists that payments from the employment agency be topped up where necessary. Its secretary Marvin Reschinsky pointed to the company's finances, saying:
Lufthansa is also currently making profits overall.
Vereinigung Cockpit vice-chair Oliver Löwe had earlier criticised the Lufthansa group for paying a costly premium for a minority stake in Portugal's TAP. He argued that the group could not claim to staff that harsh cuts were unavoidable while making such a purchase.
Further savings and outlook
Eurowings is running a short-term programme called Ebit Now to cut costs before the end of the year. A transformation programme called Ewolut is set to leave administration with 100 full-time positions fewer by the end of 2028. The airline is also renegotiating contracts with service providers, including catering and wet lease, and the planned company Christmas party is to be dropped. The letter says flights are still well booked, but the gap between revenue and costs will widen in the traditionally difficult winter months. It adds that no relief is visible for 2027 while kerosene prices remain at record levels. The management writes:
The best savings programme against record kerosene costs is new, fuel-efficient aircraft.
The same letter warns that the coming months will be hard.
