* Lufthansa faces challenges from geopolitical

disruptions and plane delivery delays

* Spohr centralises management of 12 airlines, focuses on

long-haul flights

* Union conflicts persist despite Spohr's crisis

management experience

By Ilona Wissenbach and Joanna Plucinska

FRANKFURT, March 4 (Reuters) - At Lufthansa's

base overlooking Frankfurt's bustling international airport,

chief executive Carsten Spohr has his eye firmly on his

sprawling airline empire as giant screens flash flight delay

data and other performance indicators in the background.

Spohr, a straight-talking former pilot, shows no sign of

loosening his grip after more than a decade steering a firm that

spans Germany's flagship carrier to ITA Airways and Eurowings,

including through the pandemic and a deadly crash in 2015.

One of the most prominent - and at times divisive - airline

chiefs, Spohr is looking to use his crisis experience to ride

out challenges ranging from geopolitical disruption to plane

delivery delays, and keep wary investors onside after years of

slipping shares and damaging fights with unions.

Spohr told Reuters that he was focused on efficiencies,

centralising management of the group's 12 airlines and betting

on more long-haul flights in the year ahead.

"It helps to have been a pilot to understand the company

inside out," Spohr, who joined Lufthansa in 1994, told Reuters

in his glass-walled top-floor office.

"Anybody can manage a company in sunny weather. I think it's

crisis situations in the end where you show your leadership."

NO PLANS FOR EARLY EXIT

Lufthansa's share price is up more than 60% since early 2025 as

Spohr moves to shake off the group's regional laggard status

versus Air France-KLM and British Airways owner IAG

.

That's taken some heat off, but margins have narrowed and

the shares still languish below levels seen at the start of

Spohr's tenure.

"The company is significantly improving on all fronts right

now," Spohr said, including punctuality and operations, adding

that he currently has no plans to step down before his contract

ends in 2028 although "that's up to my board and my wife to

decide".

More than 80% of flights operated by Lufthansa arrived on

time at the airline's Frankfurt and Munich hubs in the first

nine months of 2025, its best punctuality rate in 10 years.

But Spohr has acknowledged that Lufthansa - which he once

called the group's "problem child" - has struggled. He wants to

grow margins back to 8-10% between 2028 and 2030 from 4.4% in

2024.

That may require more of Spohr's "tough", "impatient"

approach, which some investors and people close to the CEO said

had previously caused tension.

"There have also been regular conflicts between the board

and the unions over the past few years," said Hendrik Schmidt

from Lufthansa investor DWS, who praised Spohr's long

experience. "The board itself must function as a team."

Ryanair Chief Executive Michael O'Leary, when asked

about Spohr's performance, praised his strong track record -

though admitted he could rub people the wrong way.

"I'm sure he has probably upset a few people along the way,

but I think he has done a terrific job," he said.

Lufthansa will publish its full-year results on Friday.

STANDOFF WITH UNIONS

Spohr needs to convince his backers that Lufthansa's worst

days, marred by missed targets, delivery delays, disappointing

operating margins and expensive strikes, are in the past.

The task wasn't helped when hundreds of Lufthansa flights were

cancelled as pilots and flight attendants walked out just last

month, disrupting travel for 100,000 passengers.

Andreas Pinheiro, president of Lufthansa union VC, said

hopes for smooth relations when Spohr took over did not last

long.

"A pilot at the helm - that had to be good for the flight

crew," he said, adding that "scepticism quickly mixed with the

euphoria" as workers were "deliberately pitted against each

other".

Spohr acknowledged the complexity of talks with labour

representatives, but said that deep-pocketed state-backed Middle

Eastern carriers didn't face the same issues hiring and firing

people. "It's just not a level playing field," he said.

Peter Gerber, the CEO of rival German airline Condor who

once worked under Spohr at Lufthansa, defended his handling of

union disputes and praised his quick thinking during a crisis

and in social environments - where he could be a "stand-up

comedian".

"He has perhaps lived and breathed the airline industry more

than any of us," Gerber told Reuters. "The Germanwings crash in

2015 was probably the most difficult period of his career. It is

largely thanks to him that Lufthansa emerged unscathed."

'MR LUFTHANSA'

Analysts and investors consider Lufthansa's complex fleet of

ageing Boeing ( BA ) and Airbus aircraft a major drag.

Spohr says new deliveries will allow the airline to finally

unblock growth, including greater fuel efficiency and cheaper

maintenance costs.

Following losses in 2024, the core Lufthansa brand is also

being overhauled, including major investment in fleet renewal

and revamping outdated cabins.

Those close to Spohr talked about his prominent status and

high level of control. One former aviation official who worked

with Spohr described him as "effectively a demigod".

Ingo Speich at Deka Investment, which has a stake in

Lufthansa, said if Spohr met his targets it would burnish his

legacy, adding that "no important decision bypasses him".

"Carsten Spohr is Mr Lufthansa," he said.

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