Lufthansa’s CEO, Jens Ritter, has firmly rejected demands from the Vereinigung Cockpit union regarding improvements to the company’s occupational pension scheme, while simultaneously offering a potential compromise centered on job security concerns. In remarks to the Funke-Mediengruppe newspapers, Ritter stated Lufthansa simply lacks the financial capacity to accommodate further pension enhancements, deeming such a move “unresponsible.
The offered concession, however, hinges on the union removing pension and transitional benefits from the ongoing collective bargaining negotiations. Ritter indicated crews are increasingly focused on halting the shrinking of Lufthansa’s short-haul fleet and securing future job prospects – areas where the company is prepared to provide “concrete assurances.
Despite Lufthansa’s core business currently projecting a return to profitability this year, Ritter cautioned against interpreting this as a foundation for increased pension commitments. He emphasized that significant capital is urgently needed for fleet renewal – involving several billion euros – alongside investments in renovating lounges in Frankfurt and Munich and driving digitization efforts. “Whether we are in the black or red, we are still far from achieving the profitability needed to fund all investments from our own resources” Ritter stated plainly.
The CEO asserted that a profit margin of 8-10% is crucial for sustainable development and job security, arguing that achieving a “break-even” result is merely an initial step. He defended Lufthansa’s existing pension system as being among the best within the industry, highlighting the company’s global appeal as an employer.
However, Ritter also acknowledged the ongoing strain of high operational costs within Germany, stressing the need for enhanced productivity and efficiency. While expressing satisfaction with the ongoing turnaround program – citing record operational performance over the past decade with significant improvements in punctuality and customer satisfaction – the underlying message remains clear: prioritizing pension demands would jeopardize the company’s long-term financial stability and risk the fragile recovery underway. The unspoken tension lies in whether Lufthansa can truly separate immediate financial realities from the longer-term need to maintain its attractiveness as an employer in a fiercely competitive global market.