Lufthansa strike disrupts tens of thousands of passengers as City Airlines secures pay deal

Tens of thousands of passengers faced travel disruption across Germany on Friday as cabin crew at Lufthansa and its regional unit Lufthansa CityLine staged a day-long strike, while the group's newest subsidiary, Lufthansa City Airlines, signed its first labour agreement.

The industrial action was organized by union UFO and will last from midnight to 10 p.m. (2000 GMT).

Fraport, the operator of Frankfurt Airport, on Friday morning said about 580 flights were cancelled, affecting roughly 72,000 passengers out of 1,350 scheduled flights and 155,000 passengers expected for the day.

The figures, Fraport noted, cover all airlines operating at the airport, not just Lufthansa, and may evolve as the day progresses.

SHARP CONTRAST WITH CITY AIRLINES

The Lufthansa strike impacted Munich as well as Frankfurt, its main hubs , while CityLine cabin crew walked out at nine airports. Lufthansa brand chief Jens Ritter criticized the action as "completely disproportionate." UFO negotiators said escalation was inevitable given stalled talks.

The walkout stands in sharp contrast to developments at Lufthansa City Airlines, the group's newest and smallest subsidiary, where the rival union Verdi secured the carrier's first collective wage agreement covering 500 cockpit and cabin staff. 

The deal, reached after marathon talks last week, will lift basic salaries by between 20% and 35% in three stages through March 2029, and includes extra days off, more vacation, improved roster planning and expanded pension support, Verdi said.

IMPACT OF LOW-COST COMPETITION

The diverging fortunes of the two subsidiaries reflect a broader restructuring underway inside the Lufthansa Group. Lufthansa operates long-haul and major European routes through its mainline airline, while short-haul feeder flights have historically been handled by CityLine.

The group has said it plans to close CityLine by year-end, with its feeder operations transitioning to City Airlines, which was founded in 2022 as a cost-efficient alternative amid growing competitive pressures in Europe's aviation industry.

The closure plan has sparked anger among CityLine's staff, who fear job losses and uncertain futures. 

(Reporting by Klaus Lauer; Writing by Kirsti Knolle; Editing by Miranda Murray and David Holmes)