Lufthansa's prospects are dwindling
In a developing situation, Lufthansa Airlines is facing the possibility of new labor disputes as unions push for new collective agreements. The Independent Flight Attendant Organization (UFO) and the Cockpit union (VC) are at the forefront of these negotiations, with the ballot for the VC running until September 30.
Jens Ritter, the head of Lufthansa Airlines, has expressed concerns about the irresponsible and unaffordable demand, stating that it could lead to relocating more aircraft to more profitable flight operations. He remains open to further talks, but warns against escalation, stating that a strike would reduce the scope for solutions and put Lufthansa's ongoing 'turnaround' at risk.
The VC's demand would mean an annual increase in costs for Lufthansa Classic Cockpit employees' pension of 228 million euros. If warning strikes occur (possibly as early as early October), Lufthansa's stock could quickly continue its downward trend.
In a similar vein, UFO has declared talks with Lufthansa management about a collective agreement solution for cabin staff to have failed. UFO wants to enforce its demands for the cabin crew of the individual airlines through separate negotiations.
Lufthansa's stock has not been reacting positively to this situation. Since slipping below its short-term uptrend and the 50-day line, the stock has been oscillating sideways above a support zone ranging from 7.30 to 7.38 euros. A sustained drop below the 7.30 euro mark could trigger further sales and pressure on Lufthansa's stock. It is recommended to place a stop-loss order at 7.20 euros for Lufthansa's stock.
The stock market is not reacting positively to Lufthansa's situation, with Lufthansa's stock falling by nearly one percent to 7.42 euros in Xetra trading. In the generally weaker MDAX environment (down 0.7 percent), Lufthansa's stock is experiencing a drop.
It is important to note that the management and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Fötsch, has entered into direct and indirect positions in the Deutsche Lufthansa financial instrument, which could benefit from the potential price development resulting from the publication.
The suspense continues with the Lufthansa stock, and active investors need strong nerves. No strike is threatened from UFO as long as negotiations are ongoing, but the potential for labor disputes remains a significant concern for the airline and its investors.
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