Last minute agreement with UFO union reached
Lufthansa has reached a pay agreement with cabin crew union UFO, averting a strike at the 11th hour.
Around 16,000 cabin crew will receive a 4.2% wage increase, effective from January 2009 and valid for 14 months.
Lufthansa also agreed to a €100 one-off payment, improved working conditions and profit sharing for 2008 of up to 3% of staff base salary.
Cabin crew voted 96% in favour of industrial action earlier this week after fourth round talks failed.
Protests staged twice this year have forced Lufthansa to cancel flights at a time when many airlines are struggling to remain profitable.
The International Air Transport Association (IATA) last week said the world's airlines had lost $8bn (€6.3bn) due to "recession and fuel hedging losses," $3bn (€2.4bn) more than the expected $5bn (€3.4bn) loss.
Rival airline British Airways said it expects a loss of $207.3m (€164.2) in 2009.
Lufthansa is due to report full-year 2008 earnings today (March 11) after raising its forecast last month.
It said fourth quarter results were stronger than expected and aided by lower fuel costs.
Lufthansa's share price has rallied 5% from €7.80 on Monday to €8.19 at close of trading yesterday.
www.lufthansa.com