German flagship airline Lufthansa has reached a deal with trade unions to increase pay for around 19,000 cabin crew by 16.5% by the end of 2026, a figure which will reach 17.4% taking into effect interest and inflation.

Staff will also receive a €3,000 ($3,222) inflation compensation payment and see other bonuses and extras increase accordingly, said the trade union UFO.

The news follows similar deals which Lufthansa has struck with trade unions representing ground crews and airport security personnel recently, bringing to an end a series of strikes which have frequently paralyzed German aviation in recent months.

Most recently, a strike grounded Lufthansa planes on March 12, although a further strike was averted over the Easter weekend.

'Good news for passengers, colleagues and for Lufthansa'

"The agreement we have now reached is good news for passengers, colleagues and for Lufthansa," said the airline's director of human resources, Michael Niggemann.

Unions had initially demanded a 15% salary increase over a much shorter period of 18 months, but have now agreed to a slightly higher increase over three years.

Pay will be increased in stages: by 8% in May this year, another 5% in May 2025 and finally by a further 3.5% in March 2026.

When the current tariff deal expires, unions have agreed not to strike in the first three months of 2027 as new deals are negotiated.

mf/wd (Reuters, dpa)