A last-minute deal with union representatives for Lufthansa pilots and Germany's largest airline averted a planned two-day strike over wages.
The Vereinigung Cockpit union planned to stage a walkout on Wednesday and Thursday after Lufthansa reportedly failed to make a "serious" offer over wage increases, according to the Associated Press. A previous walkout on Friday resulted in hundreds of flight cancelations and delays.
However, on Tuesday, both sides agreed to "an extensive package of monetary and structural issues," according to the union but did not specify details. Before the agreement, Lufthansa was preparing itself for the walkout by adjusting its flight plans because the union threatened to call a walkout by midnight.
The company's stock has fallen by approximately 3% this year, but its shares traded 3.1% higher following the news, according to Bloomberg.
Due to the growing costs of living and inflation, the airline union, which represents nearly 9,000 workers, has called for a 5.5% raise along with a new holiday schedule. Lufthansa is still recovering from its economic troubles during the Covid-19 pandemic, which nearly brought the company to bankruptcy and left it plagued with billions of debt.
The airline had initially rejected the union's offer because it would reportedly lead to a 40% increase in staff costs. Lufthansa countered with a 5% increase in the wages of senior pilots and an 18% increase for new pilots.