Eurowings weighs short-time work for flight crew as fuel costs bite

Eurowings is reviewing whether short-time work can be introduced for its German flight operations this winter, according to an internal letter from the carrier's management cited by aeroTELEGRAPH. The Lufthansa subsidiary is in talks with Germany's Federal Employment Agency on the conditions for such a step.

The review follows a jump in fuel costs. The letter states that the airline faces almost 250 million euros more in kerosene costs this year than planned. Jet fuel prices have risen sharply since the conflict between the United States and Israel on one side and Iran on the other began in early March, it said. A barrel cost between 85 and 90 dollars before the conflict and reached 209 dollars in early April, while Brent crude rose back above 100 dollars in September.

Eurowings is comparatively better placed than other airlines because of fuel hedging by the Lufthansa Group, the letter said, but the carrier is not immune to crises.

The airline has already cut planned winter flights from Cologne/Bonn and Stuttgart to Dubai. It is also reducing its winter schedule and cutting administrative positions, according to the letter.

The letter also refers to pressure from the "jet crack" spread, the premium of kerosene over crude oil, which it said has nearly tripled because flight fuel is scarce. The account notes that Air Baltic and Volotea applied for creditor protection in September.