Monday, June 16, 2025
Lufthansa Group is fast-tracking its premium expansion strategy by empowering Eurowings to introduce a business-class-style seating concept on its Airbus A320neo aircraft—making it the first German airline to offer such a premium experience on narrowbody jets. This bold move reflects the Group’s commitment to elevating customer expectations within the low-cost travel segment, targeting business and leisure travelers seeking enhanced comfort, exclusive amenities, and greater value without switching to full-service carriers. By pioneering this innovation, Lufthansa Group reinforces its leadership in European aviation while strategically blurring the lines between value and luxury travel.
Eurowings, the value airline under the Lufthansa Group umbrella, is taking a bold leap forward by launching premium business seating on its Airbus A320neo aircraft. This strategic initiative makes Eurowings the first German airline to offer a true premium experience aboard a narrowbody jet—an innovation that redefines expectations within the low-cost carrier segment.
Scheduled to launch on the Berlin–Dubai route in November 2025, Eurowings’ new ‘Premium BIZ’ seat will open for reservations beginning in August. The move is not only a milestone for Eurowings but also an experimental shift within Lufthansa’s broader network, testing how premium offerings might be integrated outside its traditional full-service brands.
A First for Narrowbody Aircraft in Germany
The premium seating, designed by renowned Italian manufacturer Geven, replaces the conventional 3-3 economy layout with a more luxurious 2-2 configuration across two rows of the A320neo. Features include adjustable backrests, plush upholstery, and an ergonomically optimized design aimed at enhancing passenger comfort on medium-haul routes.
Initially limited to flights between Berlin and Dubai, Eurowings intends to extend this new seating model to additional medium-haul routes during the autumn 2025 schedule. On aircraft equipped with the Premium BIZ cabin, travelers will now have a choice of four in-flight experiences: Premium BIZ (eight seats per aircraft), BIZclass (featuring extra legroom and a blocked middle seat), SMART (economy with optional added legroom), and BASIC economy.
This move puts Eurowings ahead of all Lufthansa Group airlines, including Lufthansa itself, which currently lacks any true premium seating on its A320-family narrowbody fleet. Even Lufthansa’s A321neos only feature economy plus seating—also designed by Geven—but fall short of a business-class standard.
Test Platform for Group-Wide Fleet Strategy
Eurowings’ announcement frames this launch not merely as a product upgrade but as a blueprint for potential cabin configurations across Lufthansa’s broader portfolio. Feedback and performance metrics from the Premium BIZ rollout are expected to influence future aircraft designs throughout the Group, both for low-cost and full-service brands.
This innovation coincides with Eurowings’ most ambitious fleet renewal to date. The airline has 48 new aircraft on order, including 40 Boeing 737 MAX 8s set for delivery between 2027 and 2030, and eight additional Airbus A320neo units due by 2027. These orders represent 40% of Eurowings’ current fleet, outpacing comparable ratios at other European low-cost subsidiaries such as Vueling (29%) and Transavia (4%).
By June 2025, Eurowings’ active fleet totals 121 aircraft, including 33 Airbus A319-100s, 63 Airbus A320-200s, eight A320neo models, six A321-200s, five A321neo variants, and six Boeing 737-800s. Notably, 28 of these aircraft are managed by Eurowings Europe Limited. The average fleet age stands at 13.5 years, slightly younger than the Lufthansa Group average of 14.7 years but older than both Vueling (12.1 years) and Transavia (10.7 years).
A Hybrid Carrier in the Making
Despite being branded a low-cost carrier, Eurowings operates with a cost structure that positions it closer to full-service airlines than budget competitors. According to CAPA – Centre for Aviation, its 2023 cost per available seat kilometre (CASK) was 15–20% higher than the trend line for other LCCs and roughly 30% above at least one peer airline with similar trip lengths. However, it remains more efficient than Lufthansa’s full-service units, with a CASK 10–15% lower than the FSC average.
In terms of load factor, Eurowings posted 84.8% in 2024, the highest among Lufthansa Group carriers and above the group average of 83.1%. Nonetheless, it trails major European LCCs—Ryanair (94%), Vueling (92.2%), Wizz Air (91.2%), and easyJet (89.3%)—showing there’s room for optimization.
Strategic Role Within Lufthansa’s Growth Vision
As of June 2025, Eurowings’ fleet consists of 121 aircraft, featuring 33 Airbus A319-100s, 63 A320-200s, eight A320neo aircraft, six A321-200s, five A321neo jets, and six Boeing 737-800s. While the Group maintains a higher volume of narrowbody aircraft within its full-service brands and continues investing heavily in those areas, the decision to pilot a premium business product with Eurowings suggests a new openness to redefining its role.
The flexibility of Eurowings, particularly in areas outside rigid union contracts and high-cost hubs, provides Lufthansa with a sandbox to test market responses to upgraded offerings. It also allows the group to explore hybrid airline models that blend value fares with selective premium perks—especially useful in competitive, medium-haul markets.
Eurowings’ structure gives Lufthansa access to lower-cost bases, more flexible crewing arrangements, and the agility to experiment without disrupting its core premium operations. This is critical in Germany’s high-cost aviation environment, which includes significant social charges and infrastructure expenses.
Pandemic Recovery Still Underway
Despite recent progress, Eurowings’ post-COVID recovery remains slower than the broader group. While passenger numbers increased by 9.6% in 2024, they were still 15.5% below 2019 figures. In contrast, Lufthansa Group saw only a 9.6% drop from pre-pandemic levels. These figures highlight Eurowings’ continuing challenges—but also underscore the urgency of innovation and product differentiation to regain momentum.
Conclusion
The introduction of premium business seating on Eurowings narrowbody aircraft is more than a comfort upgrade—it’s a strategic signal. By testing premium offerings within its value carrier, Lufthansa Group is keeping its long-term options open, positioning Eurowings as more than just a low-cost alternative. Whether this signals a lasting transformation or a temporary experiment, it reflects a bold willingness to evolve in a fast-changing aviation landscape.
As Lufthansa continues to navigate rising costs, evolving passenger expectations, and growing pressure from independent LCCs, Eurowings stands as a flexible, adaptive asset within the Group’s larger strategy. Its new Premium BIZ seat could represent the first step in a broader shift toward hybrid service models in Europe’s highly segmented air travel market.
