The Lufthansa Group finds itself navigating a complex landscape of robust financial results and escalating industrial disputes. As the critical summer travel season approaches, the German airline is contending with simultaneous labor actions that threaten operational stability.
Industrial Action Escalates with Cabin Crew Vote
The Independent Flight Attendants Organization (UFO) has initiated strike ballots among cabin crew at both Deutsche Lufthansa AG and its subsidiary Lufthansa CityLine. This move follows the collapse of negotiations for a new collective bargaining agreement. The union has leveled additional criticism at the company for refusing to negotiate a social plan for CityLine employees, despite corporate plans to cease the regional carrier’s flight operations next year—a decision impacting approximately 800 jobs.
The ballot is scheduled to conclude on March 27. UFO officials anticipate the result will be “very clear” in favor of industrial action.
Simultaneously, passenger flight operations at Berlin’s BER airport faced a complete halt due to a warning strike called by the Verdi union. From 04:00 to 22:59 local time, 445 take-offs and landings were canceled, affecting an estimated 57,000 passengers. Numerous Lufthansa services were among the disruptions.
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Multi-Front Pressure from Pilots and Ground Staff
This cabin crew dispute is not an isolated incident. Recently, the pilots’ union Vereinigung Cockpit called for a 48-hour strike after talks over a new collective pension scheme broke down. In February, Lufthansa was forced to cancel around 800 flights as a result.
The UFO ballot represents a significant escalation, as unions typically resort to such measures only when negotiations are deemed to have definitively failed. For the aviation group, the likelihood of further work stoppages has increased precisely at a time when operational business should be gaining momentum.
Strong Fundamentals Contrast with Operational Headwinds
The company’s financial fundamentals present a stark contrast to the current news flow. Lufthansa increased its revenue by five percent to €39.6 billion in 2025. Its adjusted operating profit (Adjusted EBIT) rose from €1.6 billion to €2.0 billion. The core Lufthansa Airlines brand returned to profitability, improving its Adjusted EBIT margin to 0.9 percent. For 2026, management has forecast further revenue and earnings growth, supported by a planned capacity expansion of approximately four percent.
However, market sentiment appears cautious. The share price currently trades around nine percent below its 50-day moving average of €8.69, suggesting investors are already pricing in operational risks. Should the labor conflicts intensify, the second quarter could perform significantly weaker than management’s expectations. The company’s next Annual General Meeting is scheduled for May 12, 2026, where shareholders will also vote on a proposed dividend of €0.33 per share.
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