Lufthansa captains could get 25% pay boost as Group posts record Q2 results

Lufthansa Group has released details of recent pay offers submitted to cockpit crew. These offers, incremental over the next three years, will see base pay rates increase by 18%. With lump sums and inflation bonuses on the table already agreed on last year, captains would likely see a pay raise of over 25%, while co-pilots would see a wage hike of between 33% and 50%, according to Reuters news agency.

A vote on the offer is expected to be held between now and August 12, involving some 5,200 pilots from the German flagship carrier and Lufthansa Cargo. Lufthansa’s Chief Operations Officer Karl Brandes said in the memo that the offered pay hikes would mean notable cost burdens and less flexibility in operations. “Nevertheless, we consider the result justifiable, because it offers an opportunity for a solution without conflict,” he said.

Pilots’ union Vereinigung Cockpit (VC) is yet to comment on details of the wage offer. An agreement between the union and Lufthansa would mean the airline and its passengers would be protected against walkouts by pilots for a three-year period.

In the meantime, Lufthansa Group has achieved record results in the second quarter of 2023. The Group has seen continued strong demand for air travel and high yields. Adjusted EBIT in the second quarter saw a record €1.1 billion. The figures include the highest second-quarter result ever for SWISS, Austrian Airlines, Brussels Airlines, Eurowings and Lufthansa Technik. Additionally, three M&A transactions have made the second quarter a milestone in the transformation process to an Airline Group, while net debt has now been reduced to below pre-crisis level. The Lufthansa Group has also specified its full-year outlook and expects Adjusted EBIT of at least €2.6 billion for 2023. (£1.00 = €1.16 at time of publication).