After profit increase

30 million euro bonus for AUA staff

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07.03.2024 14:34

The AUA workforce is currently fighting for more money, which is why 150 flights will be canceled on Friday. However, the airline is paying out over EUR 30 million in bonuses to employees for 2023 because profits have risen from EUR 3 million to EUR 127 million. This year, they want to pay the same amount - if the wage demands remain reasonable.

"This Friday alone will cost AUA four million euros in lost revenue and compensation payments, apart from the loss of confidence," says AUA CEO Annette Mann. Although the works council canceled the announced meeting at short notice, it was no longer possible to rebook the 12,800 affected passengers.

Mann is now urging the union and representatives of the cabin crew to return to the negotiating table quickly, but a conclusion before Easter is currently not certain. Financially, there is a lot at stake for AUA: the demanded salary increase of around 40% would have mathematically eaten up the entire previous year's profit and AUA would have been in the red. In 2023, there was already at least 11% more money, and the entry-level salaries of flight attendants were even increased by over 20%. The management is currently offering 4.5% as a basis plus a premium for an extended term of the collective agreement and further profit-sharing bonuses, which could amount to an average of up to one additional month's salary for the current 6121 employees, as in 2023.

The employee representatives want to achieve a wage increase of up to 40% through works meetings. (Bild: ROBERT JAEGER / APA / picturedesk.com)
The employee representatives want to achieve a wage increase of up to 40% through works meetings.

At the same time, AUA has to invest heavily. Three billion euros have been earmarked for new jets alone by 2028. Eleven modern Boeing 787 Dreamliners will be added to the long-haul fleet, the medium-haul fleet will also be renewed and the lounges in Vienna-Schwechat will be renovated. At 5.4% of profit, the margin is below the Lufthansa Group average of 7.6%, so further growth is needed. The result for 2023 "must not remain a one-hit wonder", Mann demands.

This worked well in the previous year: passenger numbers climbed by 24% to 13.9 million, almost reaching the pre-coronavirus level. The load factor even reached a record high of almost 82%. AUA was the third-best airline in Europe in terms of regularity, with over 84% of flights arriving on time. New this year are free WLAN in the 787 jets to North America and on medium-haul routes, and catering will also be improved with Do&Co, the management promises. Ticket prices are expected to stabilize - also due to the particularly high passenger share of low-cost airlines in Vienna (25%). Passenger revenues are therefore up to 60% lower than at the other Lufthansa main airports.

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