The ongoing dispute between the AUA and its flying staff over salary increases has resulted in a potential loss of trust among passengers and a negative impact on the airline’s balance sheet. Aviation expert Kurt Hofmann warns that if the conflict persists, it will only lead to more detrimental consequences for the AUA, including a loss of revenue and passengers turning to competitors.
The uncertainty surrounding the airline is making it unfeasible to increase salaries to match Lufthansa levels, which could jeopardize its efficiency and competitiveness. The first quarter of 2024 saw a high loss for AUA due to typical seasonal patterns in the airline industry. Vienna’s tourism market poses challenges for the AUA, but if the situation escalates, reductions in routes and long-haul traffic may be necessary.
The ultimate decision regarding the AUA’s future will be made at Lufthansa headquarters in Frankfurt. If successful as a Lufthansa affiliate, the AUA will gain more influence and resources, while failure could result in a loss of support and resources from the parent company. The airline’s ability to sustain profitability and operational efficiency will be critical in determining its fate in the coming months.