Within the Lufthansa Group, SWISS stands out as the airline with the highest profitability, boasting margins that are ten times superior to those of Lufthansa. Nonetheless, it is noteworthy that the airline is considerably overstaffed, leading the company to offer financial incentives for flight attendants to resign.
SWISS has an excess of flight attendants and is seeking cost reductions
aeroTELEGRAPH reports that SWISS management has informed the approximately 4,500 flight attendants about the necessity to decrease workforce levels. In summary, the airline has an excess of flight attendants due to a mix of engine problems grounding (A220 and A320-family) aircraft, coupled with a pilot shortage, which has resulted in an imbalance.
In the memo to flight attendants, it was stated, “balanced staffing levels will likely not be reached in the second half of the year as previously anticipated, but rather not until 2027.” Thus, the challenge is not due to a lack of flight demand — quite the opposite, as SWISS is wet leasing aircraft — but rather the inability to operate enough flights using SWISS aircraft.
Additionally, SWISS is currently focused on cost savings, given the immense uncertainty and challenges facing the industry, including the conflict with Iran and the rise in oil prices. Therefore, the airline contends that immediate cost-saving measures are necessary, one of which includes “incentivized measures to reduce excess cabin crew.”
Months ago, SWISS acknowledged being overstaffed by around 400 flight attendants, and that situation is unlikely to have improved.
SWISS offering voluntary severance, layoffs not ruled out
How is SWISS tackling its staffing excess? Initially, the airline is offering 15,000 CHF (~19,000 USD) to any full-time flight attendant who voluntarily leaves by August 2026 at the latest.
If the airline does not garner sufficient volunteers this way, it will consider alternative solutions. These may involve extended unpaid leave during peak surplus periods, reduced working hours, extended maternity leave, etc. The aim is to alleviate the staffing surplus “swiftly, effectively, and in a focused manner.”
If these strategies do not succeed, then involuntary layoffs remain a possibility. As the airline states, “should we fail to achieve this, redundancies cannot be ruled out as a final option.”
What piques my interest is the airline’s expectation to achieve balanced staffing levels by next year, presumably through fleet growth, natural attrition from flight attendants leaving or retiring, continuous pilot hiring, etc.
One might think the airline would initially look to provide unpaid leave options, as those flight attendants could be needed again next year. However, the rationale appears to be that generally maintaining less senior employees is favorable regarding pay scales, given that junior flight attendants earn less than their senior counterparts.
Bottom line
SWISS has an excess of hundreds of flight attendants, primarily due to grounded aircraft and insufficient pilots. This situation is extending beyond initial expectations, and amid current global uncertainties, the company is prioritizing cost reduction. Hence, the airline is offering 15,000 CHF to any flight attendant who chooses to leave voluntarily.
If this does not yield enough volunteers, the airline will contemplate other actions, which may even encompass layoffs. Frankly, I suspect SWISS will not be the only airline aiming to reduce workforce numbers in the upcoming weeks and months, considering the current circumstances.
What are your thoughts on the SWISS situation?