Lufthansa Faces Turbulence Amid Pilot Strike Threat

Pilots at Lufthansa have voted in favor of a strike over pension disputes, adding to the airline's labor challenges. The union's demand for a better pension deal could result in more costly disruptions. Lufthansa aims to ensure long-term viability, but faces skepticism over its plans.

Germany's Lufthansa is bracing for potential industrial action after the pilots' union, Vereinigung Cockpit (VC), announced that its members voted overwhelmingly in favor of a strike over pension disagreements. The threat of a strike comes on the heels of Lufthansa's capital markets day, where it outlined strategies for greater efficiency.

The airline has resisted calls to enhance pension provisions, considering moving jobs to more affordable subsidiaries like Discover and City Airlines. Michael Niggemann, head of human resources at Lufthansa, emphasized that solutions must align with the economic framework of Lufthansa Classic.

Despite these assurances, the prospect of a strike threatens further disruptions for Lufthansa. The airline is already grappling with cost-cutting challenges and aims to eliminate 4,000 administrative positions by 2030. Analysts remain skeptical of its ambitious new profitability targets amid industry headwinds.

(With inputs from agencies.)