Lufthansa has reached a deal with a major cabin crew union to avoid further strikes.
The UFO union held a series of strikes last year causing Lufthansa to cancel thousands of flights before both sides agreed to negotiations in November.
Lufthansa and UFO have now agreed a long-term “no strike” agreement following six months of talks to finally settle the long-running dispute over pay and early retirement benefits.
Bettina Volkens, Lufthansa’s chief human resources, said: “Reaching a comprehensive agreement and ensuring that there is no need for cabin strikes in the years ahead was tremendously important for Lufthansa and all our colleagues in the cabin alike.
“The new system for pensions and transitional payments in particular is an important step towards future-proofing our company. At the same time, we are able to continue offering our employees an attractive compensation package.”
As part of the deal, Lufthansa has agreed to a wage increase of 5.5 per cent between January 2016 and June 2019 and a one-off payment of €3,000 for each employee.
Lufthansa has been battling with unions over the past couple of years as it attempts to reduce costs to compete with European low-cost carriers such as Ryanair and Easyjet.
Strikes by both pilots and cabin crew cost Lufthansa €231 million in lost earnings last year.
Nicoley Baublies, chief negotiator at UFO, said: “After three years, two mediation rounds and the longest strike in the history of Lufthansa this result is a big success.”