GERMANY- Lufthansa (LH), Germany’s leading airline, calculated that the collective industrial actions undertaken by its workforce throughout the year resulted in a financial loss of €250 million ($272 million) for the company.
In an internal communication on Wednesday, Chief Financial Officer Remco Steenbergen disclosed this figure, emphasizing that the repercussions of the strikes persisted beyond their actual duration.
Lufthansa’s €250 Million Strike Consequence
The expense of €250 million surpassed Steenbergen’s initial estimate provided during the company’s financial presentation at the beginning of March, more than double the anticipated cost.
In the internal memo, the CFO emphasized the challenges encountered in crew roster management, flight scheduling, and the resulting uncertainty faced by customers.
One significant consequence of the strikes was disrupting the typically profitable route between Lufthansa’s main hub in Frankfurt and San Francisco, which remained suspended for a week.
Steenbergen observed a decline in customer confidence in booking with Lufthansa, leading to a tendency to avoid Frankfurt and Munich airports, the locations most heavily impacted by the strikes. Additionally, the company’s cargo services experienced adverse effects.
“Lufthansa’s financial chief remarked that recovering around €250 million isn’t an easy feat but expressed optimism that 2024 could still yield profitability if agreements are reached with unions and flight schedules stabilize from April.
Recently, CEO Carsten Spohr revealed that Lufthansa recorded substantial profits in 2023, doubling its earnings from the previous year and marking it as one of the company’s top three performing years.”
Lufthansa Faces Labor Disputes
Labour disputes involving cabin crew, ground staff, and airport security personnel have arisen with the airline.
Negotiations are underway, and Lufthansa aims to resolve the issues before the Easter break commences.
Joachim Vazquez Bürger, chairman of the flight attendants’ union Ufo, remarked on the latest negotiation session held on Wednesday, stating that there are concerns regarding finances and contract duration.
He indicated that discussions will persist, but the likelihood of reaching an agreement before Easter is currently uncertain.
Verdi’s Stance on Ground Staff and Airport Security
The Verdi union represents both ground staff and airport security personnel. Currently, arbitrators are engaged in resolving the wage dispute concerning ground staff. However, Verdi intends to initiate indefinite strikes if negotiations fail.
Verdi representatives participated in the sixth round of collective bargaining negotiations with employers on Wednesday, advocating for airport security staff.
“We are highly motivated to achieve an agreement,” Verdi negotiator Wolfgang Pieper commented before the talks.
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