German airliner Lufthansa has rejected a demand from Vereinigung Cockpit (VC), the union representing its pilots, to increase contributions to the airline’s defined contribution (DC) pension plan.
Chief executive officer Jens Ritter said the airline lacked the financial resources to further improve the pension plan for cockpit staff.
“We have a massive profitability problem at Lufthansa Classic [fare], particularly due to short-haul operations. This is because of an enormous increase in costs in almost all areas, but especially in site costs in Germany and personnel costs,” Ritter said in an internal interview.
The group reported a loss of €307m in the first half of 2025, with Lufthansa Classic accounting for €274m. The airline is banking on the success of its turnaround programme to restore profitability and considers VC’s demands unaffordable.
According to Ritter, VC’s proposal would increase annual expenses for the pension plan for Lufthansa Classic cockpit employees to €228m.
“This would more than double the amount [paid for the plan]. Meeting this demand would not only be irresponsible for our airline, but simply unaffordable,” he added.
The union has asked Lufthansa to increase contributions by €2,400 per month per pilot, based on a €10,000 base salary and €3,000 in monthly allowances. Currently, Lufthansa pays €820 per month into pilots’ pension accounts, according to VC.
The airline had previously replaced a pension plan with guarantees on contributions with a capital market-based model, which VC argues has significantly reduced benefits. The union said returns from the new model have been lower than those achieved under the guarantee-based scheme.
After negotiations with the company failed, VC has launched a ballot among pilots at Lufthansa and Lufthansa Cargo that could lead to strike action.
Ritter called for further talks to prevent escalation. “I don’t believe that seven rounds of negotiations have exhausted all possibilities for reaching a solution. We must continue to work together to find ways to prevent a further escalation. A strike would only narrow the scope for solutions,” he said.
Lufthansa is posting profits, plans to pay a dividend, and according to management, its turnaround savings programme is proceeding according to plan. Lufthansa Passenger Airlines is in much better shape than is being communicated externally, the union told IPE in a statement.
VC plans to consider further steps in the negotiations with Lufthansa following the ballot, to decide on the strike ending on 30 September.
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