A further round of strikes at Lufhansa has been averted as a pay deal was struck for 33,000 cabin crew and ground staff.
Lufthansa confirmed that a deal had been reached with the Verdi union and said it would contribute to the company's restructuring efforts.
Employees of Lufthansa Systems, Lufthansa Cargo and Lufthansa Technik will see their pay rise by 4.7%, while Lufthansa AG staff will get a rise of 3%, in a deal which runs for 26 months and excludes forced lay-offs, Verdi said.
The two sides had been in talks since the end of February but workers virtually grounded the airline last week with the second strike in a month.
Analysts estimate that walk-out alone cost Lufthansa more than €15 million, Reuters reported.
Lufthansa is pushing through a cost-cutting plan dubbed SCORE which aims to shed 3,500 jobs worldwide and increase annual operating profits to €2.3 billion by 2015 from €524 million last year.
Verdi said on Wednesday the pay rises would occur in two steps, with Lufthansa Cargo and Lufthansa Technik staff getting a 2.4% rise from August 1, 2013 and a further 2.3% from August 1, 2014.
Lufthansa AG ground crew would receive 1.5% rises on both dates, while trainees would see pay rise by 5.2%, the union said.
The deal is still subject to the approval of union members by May 14.
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