Lufthansa Group apparently posted losses to the tune of €849 million in March 2024, whereas its losses in Q1 of 2023 were only €273 million.
Losses incurred due to flight attendants and ground staff of Lufthansa, the airline, going on strike cost the airline about €350 million. In order to resolve the issues of the striking staff, the airline will have to shell out another €100 million in the form of pay hikes and short-term bonuses two months’ time.
In addition to Lufthansa airline, the Lufthansa Group comprises subsidiaries such as Austrian and Brussels Airlines, which also experienced strikes, walkouts and worker protests.
Thousands of Lufthansa employees who are members of the Verdi United Services Union and the UFO Independent Flight Attendants Organisation, had gone on strike demanding better pay. With flights being grounded for up to two days every time a strike took place, the airline lost many customers. Thousands of flights were cancelled across the Group.
Although there seems to be an uptick in travelers this summer, Lufthansa will find it difficult to achieve pre-pandemic capacity levels. This is because the arrival of new aircraft has been delayed and the airline is still working to streamline and improve operations.
Given the losses, the Lufthansa Group is reducing its financial forecast for the year.
In March 2024, after weeks of wage dispute and subsequent strikes causing disruptions for passengers, Lufthansa had managed to reach a consensus with Verdi regarding pay raises for its 25,000 ground staff. At the time, Michael Niggemann, human resources director, Deutsche Lufthansa AG, had indicated that a ‘good compromise’ had been reached. However, no specifics regarding hikes were provided.
