Top Lufthansa Investor Urges Management to Tackle Labor Resistance Amid Lagging Share Price

Lufthansa’s largest shareholder, Klaus-Michael Kuehne, has called on the airline’s management to take stronger action against labor resistance, citing ongoing structural issues and a lagging share price. Speaking to Welt am Sonntag, the billionaire logistics magnate criticized the impact of wage negotiations, high payroll costs, and frequent walkouts, stating that these challenges are making it increasingly difficult for the executive board to drive meaningful progress.

Kuehne, who owns a 15% stake in Lufthansa through Kuehne Aviation, emphasized that the airline group must intensify its efforts if it wants to remain competitive globally. Lufthansa is currently banking on profitable transatlantic routes to revive its core brand, which has been struggling under pressure from labor disputes and intense competition from Asian carriers. While shares in Lufthansa have risen about 6% in 2025—on par with Air France-KLM—they continue to underperform when compared to British Airways owner IAG.

Despite recent expansion efforts, including the addition of Italy's ITA Airways to its portfolio alongside Swiss and Austrian Airlines, the company faces internal hurdles. Kuehne stressed that resistance from the works council and union-led disruptions are obstructing progress. "Whether the executive board takes sufficient action remains to be seen. In my opinion, more could be done," said the 87-year-old investor, who also holds major stakes in logistics giant Kuehne + Nagel and chemical distributor Brenntag.

With structural reforms still pending and rising operational costs, analysts suggest Lufthansa must streamline its labor relations and optimize its international strategy to boost shareholder value and regain its competitive edge in the European aviation market.