Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Lufthansa cancels hundreds of flights as pilots strike over pay

Published 09/02/2022, 01:03 AM
Updated 09/02/2022, 10:42 AM
© Reuters. Airplanes of German carrier Lufthansa are parked at the Berlin Schoenefeld airport, amid the spread of the coronavirus disease (COVID-19) in Schoenefeld, Germany, May 26, 2020. REUTERS/Fabrizio Bensch

By Frank Simon and Andreas Buerger

FRANKFURT (Reuters) -Pilots at Lufthansa went on strike on Friday, forcing the German airline to cancel hundreds of flights, stranding holidaymakers.

The airline said it had cancelled about 800 flights at its main bases in Frankfurt and Munich on Friday, affecting 130,000 passengers, and said it was working flat out to minimise the impact of the strike.

Labour union Vereinigung Cockpit (VC) had called on more than 5,000 Lufthansa pilots to stage a 24-hour walkout, saying the latest round of wage talks had failed.

Strikes and staff shortages have already forced several airlines, including Lufthansa, to cancel thousands of flights this summer, leading to long queues at major airports, frustrating people keen to start travelling again after COVID-19 lockdowns.

Passenger Liane Dickson was due to fly to Amsterdam from Johannesburg via Frankfurt, but the second leg of her flight was cancelled before she left South Africa.

"It is now 16 hours later and we have no email to say why it happened, what should we do next," she said at Frankfurt airport.

"At Johannesburg airport yesterday it was chaos because people didn't know whether they should check in their luggage to Amsterdam or to Frankfurt."

The VC union is demanding a 5.5% pay rise this year and automatic inflation compensation thereafter as well as better terms for entry-level pilots.

Lufthansa has said VC's demands would raise its staff costs by 40% or around 900 million euros ($899 million) over the next two years.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The airline has offered a total of 900 euros ($901.35) more in basic pay per month in two stages over an 18-month period, which it said would result in more than 18% higher pay for entry-level jobs and 5% more for senior positions.

VC's demands also come against the backdrop of soaring energy and food prices, with German inflation rising to its highest level in almost 50 years in August.

"I don't think this (strike) is appropriate. It's the main travel season and it's at very short notice," said Andrea Buchloh-Adler, at Frankfurt airport. "Pilots are not low-earners. They are certainly not hit as hard by the energy crisis and inflation as many others who do their work every day."

Last month, Lufthansa's management reached a pay deal with ground staff, averting further walkouts after a strike had forced it to cancel more than 1,000 flights.

Lufthansa also faces possible walkouts by pilots of subsidiary Eurowings, who have voted for industrial action but are due to hold a round of talks with management next week.

($1 = 1.0016 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.