Eurowings is considering introducing short-time working arrangements for employees in Germany as rising aviation fuel prices place increasing pressure on the airline’s finances. The Lufthansa subsidiary is also reducing its winter flight schedule by approximately five percent in response to higher operating costs.
Rising Fuel Costs Put Pressure on Eurowings
German leisure airline Eurowings is facing a challenging winter season, with additional fuel expenses expected to reach approximately €250 million in 2026. Despite recording three consecutive profitable years, the carrier is now examining measures to reduce expenditure and maintain financial stability.
According to reports by aero.de and aeroTELEGRAPH, Eurowings has begun discussions with Germany’s Federal Employment Agency to determine whether it qualifies for short-time working arrangements, known as Kurzarbeit. Under this system, employees temporarily work fewer hours while receiving partial government compensation for lost earnings.
No final decision has been made, and the airline has not specified how many employees could be affected.
Winter Schedule Reduced by Five Percent
Alongside the potential workforce measures, Eurowings is reducing its planned capacity for the 2026/2027 winter season by approximately five percent.
Among the most notable changes are the cancellations of recently announced Dubai services from Cologne/Bonn and Stuttgart. These longer routes are particularly sensitive to rising fuel prices due to their higher fuel consumption. Demand for travel to the Gulf region has also been affected by regional instability.
Flights between Berlin and Dubai are expected to continue, while further adjustments across the network will primarily involve reductions in individual flight frequencies rather than complete route cancellations.
Financial Pressure Across Lufthansa Group
The challenges facing Eurowings reflect broader cost pressures throughout Lufthansa Group. Although the company uses fuel hedging arrangements to reduce exposure to price fluctuations, increasing kerosene prices continue to affect profitability.
Eurowings reported an operating profit of €132 million in 2025, meaning its projected additional fuel expenses for 2026 are nearly twice that amount. Management is consequently seeking savings across both flight operations and administrative activities.
Employee representatives have expressed concerns about the potential introduction of short-time working and the implications for staff. Trade union Verdi has called for appropriate consultation and financial protection for affected employees.
For now, the proposed employment measures remain under review. However, the winter schedule reductions demonstrate that rising operating costs are already influencing Eurowings’ network strategy as the airline prepares for the coming months.
