For Eurowings, a subsidiary of Lufthansa, the impact was particularly acute. This financial burden forced the company to reconsider its operations and explore cost-saving measures.
On October 16, 2026, Eurowings initiated discussions with the German Federal Employment Agency about the possibility of implementing short-time work (Kurzarbeit) for its employees. Short-time work is a form of reduced working hours with corresponding pay reductions, aimed at stabilizing employment during economic downturns. Eurowings was exploring whether such a measure could be implemented in its German operations, particularly during the winter months when flight demand typically decreases.
As part of its cost-saving measures, Eurowings announced the cancellation of some flights and internal events. The company planned to cut 5% of its planned program, which would involve reducing the number of flights and potentially scaling back on non-essential activities. These decisions were made to mitigate the financial impact of the kerosene price hike and ensure the airline could continue operating efficiently.
On the other hand, the pilot union Vereinigung Cockpit took a more critical stance.
The news of Eurowings' plans did not go unnoticed by labor unions. The Gewerkschaft Verdi, a major German trade union, expressed its willingness to participate in the design of the short-time work program. However, the union also demanded that the payments to the employment agency be increased if necessary to ensure that affected employees received adequate support. On the other hand, the pilot union Vereinigung Cockpit took a more critical stance. The union criticized Lufthansa for taking a minority stake in Tap Portugal, a Portuguese airline, as too costly.
Marvin Reschinsky, a spokesperson for Vereinigung Cockpit, expressed his concerns. 'The Lufthansa group also currently earns profits,' he stated.
The decision by Eurowings to consider short-time work and cut its program by 5% set the stage for a broader debate within the aviation industry. While some unions supported the move as a necessary step to stabilize employment, others, like Vereinigung Cockpit, remained critical. The situation underscored the complex interplay between short-term financial pressures and long-term strategic decisions in the aviation sector.
As the aviation industry continues to grapple with the challenges posed by rising kerosene prices, the case of Eurowings serves as a microcosm of the broader issues facing airlines. The company's decision to consider short-time work and cut its program highlights the delicate balance between cost management and employee welfare. The debate that ensued within the industry and among labor unions reflects the ongoing struggle to find sustainable solutions in a rapidly changing economic landscape.