Deutsche Lufthansa AG (LHA) suspended almost its entire service for a full day as a strike by workers demanding more pay crippled operations at Europe’s second- largest airline.
The airline grounded a total of 1,755 flights today, with only about 20 of 1,650 planned European flights and 12 of 70 planned long-haul services taking off, the carrier said. Lufthansa cannot yet quantify the financial fallout because the airline must first establish how many passengers will rebook flights, cancel them, and have to be looked after when stranded.
The protest comes as Lufthansa tries to push through its most ambitious efficiency program ever to generate the money necessary to rejuvenate its aging fleet. The strike is the biggest disruption of air travel in Germany since April 2010, when the eruption of Iceland’s Eyjafjallajökull volcano grounded 100,000 flights in six days throughout Europe.
"It demonstrates the power of the unions," said Jochen Rothenbacher, an analyst at Equinet in Frankfurt. "Motivation to strike seems to be high, allowing the union to flex their muscles." Rothenbacher predicts the strike may cause about 20 million euros ($26.1 million) in operating losses for the company and may complicate efforts to push through savings.
Lufthansa rose as much as 33 cents, or 2.3 percent, to 14.23 euros, and traded at 14.20 euros as of 12:15 p.m. in Frankfurt, where the company’s main fleet is based. The stock is little changed so far this year.
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