AUA says Vienna Dreamliner order is at risk

Austrian Airlines (AUA) says a planned order for five Boeing 787 Dreamliners could be in jeopardy unless Austria cuts aviation charges. The airline told ORF that the government’s proposed relief package is not enough to support an investment decision for Vienna.

AUA chief executive Annette Mann called for a clear political commitment to the aviation industry. While airport fees have risen moderately, she said, state taxes and charges in Austria have increased by 85 percent since 2019. Mann wants the air traffic tax cut from 12 euros to 8 euros per passenger, which she said would provide relief of 70 million to 75 million euros. She described the 60 million euros in relief outlined by Transport Minister Peter Hanke as a positive signal, but said it would not meet the airline’s needs.

Industry sources say that without a prompt government decision, delivery slots for five new Boeing 787s within the Lufthansa Group could be given to other airlines. The planes were due to arrive in Vienna between late 2027 and early 2029, replacing AUA’s ageing Boeing 777 fleet. The airline could keep the 777s in service for a few more years to avoid an immediate reduction in its network, but industry insiders warn that without replacement aircraft AUA could eventually become an all-Eurowings base.

AUA’s management says plans are ready to add three long-haul destinations from 2027 or 2028, a move that would require two additional aircraft. The airline says each aircraft would support 350 jobs and an annual payroll of 37 million euros. An agreement with the works council and advance resolutions within the group are in place, but the decision now depends on political conditions.

AUA paid 140 million euros in environmental taxes and charges in 2025. Mann said investment funds are contested within the Lufthansa Group, and future growth could go to other hubs if Vienna’s costs are not competitive.

High fuel costs are also weighing on the airline. AUA says its additional kerosene costs this year will reach 150 million to 200 million euros, compared with an operating profit of about 80 million euros last year. Because tickets are often sold months in advance, the airline absorbed most of the added costs in the first half of this year, contributing significantly to its half-year loss.

AUA passed on higher fuel costs through ticket prices last summer, when demand was very strong. Mann is less certain that will be possible this coming winter, so the airline plans to cut its winter schedule by an average of 5 percent.