Lufthansa Faces Strikes After Union Vote

Lufthansa could face further walkouts after members of cabin crew union UFO authorized open-ended strikes.

Around 96 percent of votes cast in a ballot were in favor of industrial action, more than the 70 percent required to launch full strikes, the union said on Monday.

A person familiar with the matter had earlier said Lufthansa was in last-ditch talks with UFO to avert a walkout.

A fourth round of wage talks in which Lufthansa offered a wage increase of up to 10 percent failed last month. The package included better work conditions and profit sharing.

Pushing for a better offer, flight attendants represented by UFO have staged protests twice so far this year, forcing the carrier to cancel dozens of flights and cope with delays.

Airlines are struggling to remain profitable as businesses and consumers curb their travel budgets amid the global economic crisis. The world's airlines lost up to USD$8 billion in 2008, the International Air Transport Association said last week.

Last July, Lufthansa's passenger numbers were hurt by strikes by ground staff and cabin crew as well as walkouts by regional pilots that forced the carrier to cut flights.

The wage agreement that ended that walkout added around EUR100 million euros (USD$126 million) a year to costs, the company has said.

Lufthansa is due to report full-year 2008 earnings on Wednesday.

The company last month raised its outlook, saying its fourth-quarter had yielded stronger results than expected, aided by lower fuel costs.