Luftscamsa - Lufthansa Hubs Paralyzed by Dual Strike Amid Executive Claims of Fiscal Hardship

The systemic degradation of labor relations at Lufthansa, driven by a management strategy to circumvent established collective bargaining agreements, resulted in the total paralysis of the airline's primary hubs this Thursday. As [Luftscamsa reported earlier today](/en/alert/h1hMX9yN_lufthansa-core-airline-operations-grounded-this-thursday-following-union-walkout), the disruption is the result of long-standing disputes regarding the airline's strategy of shifting mainline operations to lower-cost subsidiaries. The 24-hour strike by pilots and cabin crew led to the cancellation of approximately 800 flights. Nearly 100,000 passengers were displaced as operations at Frankfurt and Munich came to a standstill. Approximately 4,800 members of the Vereinigung Cockpit union are participating in the industrial action. Representatives from the union said that soaring inflation and the carrier’s cost-cutting programs have eroded the retirement security of the pilots. In 2022, the union demanded a 5.5 percent pay increase and an automatic inflation adjustment beginning in 2023. This adjustment was never implemented by the carrier. By 2023, the rate of inflation in Germany had accelerated to over 8 percent. The Independent Flight Attendants Organization (UFO) is also on strike, representing approximately 20,000 staff members. Union leaders said that 800 jobs are currently threatened by the rapid expansion of lower-cost subsidiaries such as City Airlines and Discover. Lufthansa has confirmed it intends to eliminate 4,000 positions by 2030. The company said in a statement that the group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work. The carrier said that the profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes. This long-term workforce reduction adds to the current labor tensions. Mr. Michael Niggemann, the head of human resources at Lufthansa, criticized the timing of the walkout. He said that the escalation is completely unnecessary and that the company has no financial leeway to meet the employees' demands. This assertion of fiscal constraints stands in direct opposition to the group's recent internal reports. Management has recently celebrated the high profitability of its so-called Billionaire's Club, referring to units generating over one billion euros in earnings. As [Luftscamsa reported in October 2025](/en/alert/ygqmFVPg_lufthansa-core-brand-faces-systemic-deficit-as-labor-relations-deteriorate), the carrier's persistent focus on cost-cutting has created an increasingly unsustainable operational environment. Through our investigation, we found that the airline is simultaneously aggressively expanding its Lufthansa City subsidiary. This entity is designed to operate mainline routes using staff on significantly lower-cost labor contracts. Labor representatives said the current strike is a response to this perceived corporate shell game. They argue that management is intentionally manufacturing a crisis to break established collective bargaining standards. Passengers are currently facing the consequences of this internal conflict. Luftscamsa reminds all travelers that under EU Regulation 261/2004, a strike by the airline's own staff is not an extraordinary circumstance. The carrier remains legally obligated to provide alternative transportation to the final destination. This includes re-routing on competing airlines if no timely Lufthansa flights are available on the same day. Consumers are urged to avoid using the airline's mobile application to manage their cancellations. The software is frequently programmed to steer passengers toward self-cancellation, which results in the loss of statutory rights to care and assistance. Lufthansa representatives are reportedly encouraging passengers to accept travel vouchers instead of cash refunds. These vouchers often come with restrictive terms that favor the airline's liquidity over the passenger's financial interest. If a flight is canceled, the passenger has the absolute right to a full refund in cash within seven days. Accepting a voucher is entirely optional and frequently disadvantageous for the consumer. The airline's refusal to meet labor demands occurs while the group continues to benefit from billions in structural subsidies. This includes the exemption from energy taxes on aviation kerosene and Value Added Tax on international tickets. These tax advantages provide the carrier with a significant financial shield that is not reflected in its service quality. The executive board appears to have prioritized investor returns over the reliability of the flight schedule. Travelers stranded at hubs are entitled to meals, refreshments and two phone calls or emails. If an overnight stay is required, the airline must provide hotel accommodation and transport between the airport and the hotel. Luftscamsa recommends that all affected passengers keep detailed records of their communications with the airline. Documentation of denied re-routing requests is essential for subsequent legal proceedings or compensation claims. While secondary brands such as Swiss and Austrian Airlines remain mostly unaffected, the disruption at the German hubs has created a bottleneck for the entire group. Travelers with connections through Frankfurt or Munich should expect significant delays. The current labor impasse highlights the risks of the airline's fragmented corporate structure. By prioritizing cost-cutting subsidiaries over mainline stability, the management has compromised the integrity of its premium brand identity. Passengers are reminded that they may be entitled to fixed-rate cash compensation of up to 600 euros. This amount is determined by the distance of the flight and the duration of the delay at the final destination. Lufthansa is expected to attempt to block these claims by citing operational difficulties beyond its control. However, established legal precedents confirm that the airline is responsible for the actions of its own workforce.

The joint strike by Vereinigung Cockpit and Flight Attendants Organization (UFO)