Lufthansa's Centennial Clash: Shareholders Eye Payout Amid Dual Strikes

Lufthansa faces costly strikes and fuel price pressure during its centenary, yet shares gain and investors eye strong 2025 results, dividend, and board changes.

As Lufthansa prepares to mark its 100th anniversary with a gala event in Frankfurt on Wednesday, the celebratory mood is being drowned out by the sound of grounded aircraft. The airline finds itself navigating a perfect storm of industrial action, with a pilots' strike concluding only for a cabin crew walkout to begin on the very day dignitaries, including Federal Chancellor Friedrich Merz, are set to attend.

Despite this operational chaos, the company's shares have shown surprising resilience. The stock climbed 2.74 percent to EUR 7.98 on Tuesday, bringing its seven-day gain to over eight percent. However, the equity remains under pressure, currently trading at EUR 7.83 and below its 200-day moving average of EUR 8.03. A decisive breakout above the 50-day line at EUR 8.34 has yet to materialize.

The financial toll from the labor disputes is mounting rapidly. The 48-hour strike by the Vereinigung Cockpit (VC) union, which ended Tuesday at 23:59, targeted Lufthansa, Lufthansa Cargo, and CityLine, primarily over pension provisions. It followed a separate walkout by the UFO cabin crew union last Friday. This clustering of strikes is proving costly, leading to hundreds of canceled connections at major hubs in Frankfurt and Munich. The airline is losing direct revenue from scrapped flights and faces potential compensation payments of up to EUR 600 per passenger. While partners like SWISS are helping to mitigate some disruptions, the financial damage will be quantified when Lufthansa releases its first-quarter interim report on May 6.

The turbulence extends beyond labor relations. Geopolitical tensions in the Middle East are driving up kerosene costs, squeezing margins. Although Lufthansa has hedged approximately 80 percent of its annual fuel needs against price volatility, management is internally preparing for tougher scenarios, including cutting unprofitable routes and retiring older aircraft ahead of schedule.

Amid these headwinds, investors are focusing on the company's strong prior-year performance and future governance. For the 2025 financial year, Lufthansa posted record revenue of EUR 39.6 billion and an adjusted operating result of around EUR 2.0 billion. Shareholders will vote on a proposed dividend of EUR 0.33 per share at the Annual General Meeting on May 12 in Frankfurt—a 10 percent increase year-over-year.

That same meeting will also oversee a significant supervisory board reshuffle. After eight years, Carsten Knobel will step down. Former E.ON CEO Johannes Teyssen is nominated to join the board and is expected to eventually assume the chairmanship, with Bayer CFO Wolfgang Nickl also proposed as a new member.

Strategically, the integration of ITA Airways remains a key priority, with the Italian carrier slated to join the Star Alliance in the first half of 2026. This move is considered a vital step toward building a more stable and robust network. For now, the immediate challenge is resolving the dual conflicts with VC and UFO. As long as both unions negotiate in parallel, the potential for further flight operation disruption remains critically high.