Deutsche Lufthansa AG said it’s preparing an improved offer to pilots threatening to stage a two-day strike starting at midnight, a last-ditch effort to hammer out an accord and avert crippling disruptions at its main airports.
(Bloomberg) — Deutsche Lufthansa AG said it’s preparing an improved offer to pilots threatening to stage a two-day strike starting at midnight, a last-ditch effort to hammer out an accord and avert crippling disruptions at its main airports.
The VC pilots union said its members would go on a walkout starting after midnight and ending just before midnight on Thursday. Fresh strikes would add to the about 8,000 flights Lufthansa has already canceled during the lucrative summer travel season. Cargo-aircraft pilots plan to strike for an additional day, the union said.
Lufthansa said it would hold talks with the union on Tuesday and make a better offer in a bid to reach agreement, warning of the “massive” impact on its flight schedule should the walkout take place. The airline earlier this summer avoided a second round of strikes from its ground crew union by improving its pay offer.
“We will do everything we can to be successful with an improved offer, even under time pressure,” said Michael Niggemann, the Lufthansa board member responsible for labor issues. The union said it needs a “serious offer” to avert the strike.
Lufthansa shares traded 0.49% higher as of 9:40am in Frankfurt. The company’s stock has fallen about 4% since the start of the year.
Late last month, the union — which represents about 9,600 members — voted overwhelmingly in favor of walkouts. Lufthansa’s pilots are demanding wage increases to help offset the near double-digit increase in consumer prices. A walkout by ground crew caused the carrier to scrap hundreds of flights at its Frankfurt and Munich hubs just last week.
Europe’s aviation industry has been plagued by chaotic operations in recent months, partly because of a lack of ground personnel in areas from security to baggage handling, and as employees push for higher wages to grapple with soaring costs of living.
Travel demand has roared back as people return to business trips and vacations after being stuck in lockdowns for the better part of two years, pandemic-fighting measures that pushed Lufthansa to the brink of bankruptcy in 2020 and left it saddled with billions of euros in debt.
In a bid to cut the carrier’s debt pile, Lufthansa Chief Executive Officer Carsten Spohr has pledged to boost the airline’s earnings margin to a minimum of 8% by 2024. Disputes with worker representatives and concessions over pay suggest Spohr might have trouble reaching those goals, as he tries to balance the need for more staff with a push to cut costs.
(Updates with changed lead, additional context, company comment)
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