Lufthansa and the UFO trade union, which represents some 19,000 Lufthansa cabin crew in Germany, have agreed a deal to end a wage dispute that has caused recent travel disruption due to strike action.

The new collective labour agreement follows a similar deal confirmed last month for ground staff and will see cabin crew receive a progressive 16.5 per cent pay increase over the next 36 months.

The deal, valid for at least three years, also includes inflation compensation of €3,000 per employee, increased holiday pay (€1,250) and a larger foreign language allowance (€65).

Deutsche Lufthansa chief human resources officer and labour director, Michael Niggemann, said the agreement will ¡°finally¡± give passengers planning security when booking travel.

¡°Our goal has always been to find a solution at the negotiating table together with the union. We have now succeeded in doing so. At the same time, the agreed salary developments in all professional groups are also an economic challenge that we now have to deal with,¡± he said in a statement.

The German carrier has been?plagued by strikes?since the beginning of the year and in its latest earnings report Lufthansa adjusted its 2024 operating margin down?as a result of the combined labour disputes.