AUA cancels Vienna-Graz flight amid financial losses

Austrian Airlines (AUA) is cutting its Vienna-Graz route, a connection described as "highly unprofitable for years," as part of measures to manage its financial deficit. The Lufthansa subsidiary announced on Tuesday that the route will cease operations with the upcoming winter flight schedule.

AUA's CEO, Annette Mann, stated that the airline has been "enormously hit" by the sharp rise in kerosene costs, exacerbated by the conflict in Ukraine. These increased fuel expenses, coupled with necessary route adjustments, have significantly impacted the company's financial performance.

The airline reported a substantial loss before interest and taxes (EBIT) of 94 million euros for the first six months of 2026. This financial pressure has led to the decision to eliminate the unprofitable domestic route.

The move reflects broader challenges faced by the aviation industry, particularly concerning fuel price volatility and operational costs. By streamlining its network and cutting loss-making routes, AUA aims to improve its financial standing and navigate the current economic climate.

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The war in Ukraine has enormously hit the airline through the sometimes extremely increased kerosene costs as well as the necessary route cancellations.