Lufthansa reaches wage accord with cabin crew, averting strikes

Deutsche Lufthansa AG clinched a wage accord with cabin crew, ending months of intense negotiations that had been punctured by crippling strikes at Europe’s largest airline group. 

The deal will give about 19,000 members of Lufthansa’s cabin personnel a 16.5% wage increase in three steps over 36 months, Lufthansa said in a statement. The accord is valid until at least the end of 2026 and protects Lufthansa from strikes until then. 

Workers will also get a €3,000 ($3,224) bonus as part of an inflation-compensation payment, as well as some other concessions including additional pay for higher-level employees like pursers and an increase in vacation pay, according to the statement. 

The accord with one of Lufthansa’s biggest unionised groups ends months of acrimonious battles for higher pay. Lufthansa had long resisted the demands, saying they’d put too much pressure on the airline at a time when the recovery from the pandemic remains fragile, while workers pointed to record earnings at the company and demanded their fair share of the spoils. 

Germany has endured waves of strikes not only by Lufthansa employees but also from workers at train operators in recent months. The conflicts coincided at times, all but halting air and rail travel in Europe’s largest economy. 

Lufthansa shares dropped as much as 12 cents to €7.1, in line with a broader retreat among European airlines. Lufthansa has lost 12% in value this year, the worst European performer on the Bloomberg World Airlines Index in the period.