The AUA is facing a significant conflict with its flying staff, which has rejected an 18 percent increase in salary offered to on-board staff. This dispute is negatively impacting the airline’s balance sheet, causing a loss of revenue and eroding trust among passengers.
According to aviation expert Kurt Hofmann, the longer this conflict persists, the more damage it will do to the AUA. With competition from various airlines in Vienna, including low-cost carriers and major international airlines, the AUA is facing financial constraints that make matching Lufthansa salaries unfeasible.
The first quarter of 2024 resulted in a high loss for AUA, which is common for airlines in Europe due to seasonal factors. Vienna’s tourist market presents challenges for the airline, which has historically maintained a strong cost structure. However, there may be limited options for further cost cutting.
In the worst-case scenario, the AUA may have to reduce operations and cancel feeder routes to the Vienna hub. Ultimately, decisions about the AUA’s future will be made by Lufthansa in Frankfurt based on the airline’s performance and financial viability within the group. The sustainability of profits will be a key factor in determining the AUA’s fate within the Lufthansa network.
