BERLIN— Lufthansa (LH) could face another wave of labor unrest after negotiations with its main flight attendant union collapsed over proposed changes to employment rules. The dispute raises fresh concerns for passengers traveling through major hubs such as Frankfurt Airport (FRA) and Munich Airport (MUC).
The German flag carrier has demanded sweeping revisions to cabin crew working conditions as it seeks to cut costs and improve efficiency. However, the UFO union, which represents thousands of flight attendants at Lufthansa, has rejected the proposals and warned that talks cannot continue unless the airline significantly revises its demands.
Lufthansa’s Contract Talks Stall
Lufthansa and the UFO union recently met to negotiate a new framework collective agreement known as the Manteltarifvertrag (MTV). This agreement governs key employment terms including working hours, rest requirements, and sick pay for cabin crew.
During the meeting, Lufthansa reportedly proposed extensive changes aimed at increasing operational flexibility. Union representatives rejected the proposals immediately and walked out of negotiations.
According to internal communications shared with members, the union believes the airline’s plan would give management excessive control over scheduling and employment conditions.
Officials described the proposal as unacceptable and said the two sides remain far apart on what a new agreement should look like.
For now, no strike has been formally announced. However, labor actions in Germany can be organized with minimal notice, which keeps the risk of disruption high.
Lufthansa Cost Pressure
The dispute comes as Lufthansa attempts to address weak financial performance compared to other airlines within the Lufthansa Group.
According to PYOK, in 2025, Lufthansa generated €17.1 billion in revenue but posted only €148 million in profit. This translates to an operating margin of roughly 0.9 percent.
Other airlines within the group performed significantly better. SWISS achieved a margin of about 9.3 percent, while Eurowings reported around 4.3 percent.
Brussels Airlines and Austrian Airlines also delivered higher operating margins than the group’s main brand.
Chief executive Carsten Spohr has previously described the core Lufthansa airline as the “problem child” of the group. He argues that outdated work structures and higher labor costs have made the airline less competitive than its sister carriers.
Union Pushback
Flight attendants and unions view the airline’s restructuring efforts very differently. The latest proposal follows earlier tensions over the closure of Lufthansa’s short-haul subsidiary CityLine.
The airline has already launched a replacement unit called Lufthansa City Airlines, where new cabin crew contracts reportedly offer lower wages and fewer benefits. The move has intensified concerns among union members about long-term job conditions.
Labor tensions have also proven expensive for the airline in the past. Coordinated strikes by cabin crew and ground staff in 2024 were estimated to cost Lufthansa roughly €350 million, in addition to about €100 million in wage increases agreed after negotiations.
The airline now faces labor disputes on several fronts. Pilots are also involved in separate negotiations over pension arrangements, raising the possibility of further industrial action during Lufthansa’s centenary year.
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