German flag carrier Lufthansa has presented a “radical overhaul” of its collective agreement for flight attendants, targeting working hours, rest periods and sick‑pay provisions. The UFO union rejected the proposal outright and warned it will not resume talks until the airline retracts its demands, raising the spectre of another strike. Lufthansa’s operating margin sits at just 0.9% for 2025, far below the more profitable Swiss and Eurowings units, prompting cost‑cutting moves such as replacing CityLine with a lower‑paid subsidiary. A 2024 coordinated strike already cost the airline roughly €450 million, underscoring the financial stakes.
Lufthansa’s latest labor showdown reflects a broader crisis in legacy carriers that are grappling with high‑cost workforces and thin margins. The airline posted €17.1 billion in revenue for 2025 but earned only €148 million in profit, translating to a 0.9% operating margin—well under the 9.3% achieved by its Swiss subsidiary. To close the gap, CEO Carsten Spohr has been reshaping the group’s structure, shuttering the higher‑paid CityLine unit and launching a cheaper Lufthansa City Airlines subsidiary that offers reduced wages and fewer benefits to cabin crew.
The UFO union’s outright rejection of the proposed “radical overhaul” of the Manteltarifvertrag (MTV) signals a hardening standoff. The union argues the changes would give the airline unchecked flexibility over schedules and sick‑pay, while Lufthansa frames them as necessary for “genuine stability” and demand‑driven seasonality. Past industrial action in 2024, which combined flight‑attendant and ground‑staff strikes, cost the carrier roughly €350 million in lost revenue plus an additional €100 million in wage concessions, highlighting the high price of labor disruption.
For investors and industry watchers, the outcome will shape Lufthansa’s ability to execute its turnaround program. A renewed strike could further compress the already fragile profit margin, delay fleet modernization, and erode customer confidence across Europe’s busiest routes. Conversely, a negotiated settlement that balances cost reductions with fair labor terms could restore margin stability and set a precedent for other legacy airlines facing similar workforce pressures. The next weeks will be pivotal in determining whether Lufthansa can align its cost structure with its revenue ambitions without sacrificing operational reliability.
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