Lufthansa to cut more costs, as cabin crew strike over pay

Lufthansa announced plans Thursday to cut costs at its Austrian Airlines, Brussels Airlines and Lufthansa Cargo businesses to revive profits but faces a fresh challenge to its efforts with a cabin crew strike this week. Lufthansa has reacted to competition from Ryanair and easyJet by cutting costs and announcing a turnaround plan in June for Eurowings, which it said on Thursday was paying off as it reported better-than-expected quarterly figures. Cabin crew launched a strike over pay and pensions that will result in the cancellation of 1,300 flights on Thursday and Friday and affect 180,000 passengers. Trade union UFO has called for the walkout on what amounts to one in five of the carrier’s planned 6,000 flights. One day of strike action would cost the company an estimated 10 to 20m euros, finance chief Ulrik Svensson said. Even rumours of a walkout would deter customers, he added. CE Carsten Spohr said he was prepared to enter into arbitration talks with all three unions that represent cabin staff, including UFO. Lufthansa and UFO have been at odds for months over the union’s legal status. UFO said it would talk to the airline this weekend and would not prolong the strike beyond Friday or extend it to other airlines in the group. Story has more details.<br/>