Lufthansa and the Vereinigung Cockpit pilots' union have agreed to comprehensive arbitration to resolve their wage dispute, with the process to be supplemented by formal mediation, after cockpit crew strikes helped drive an 88 percent plunge in second-quarter net profit.
The union called pilots out on seven days this year, including during Lufthansa's centenary celebrations when hundreds of flights were cancelled. The airline estimated the industrial action cost around 150 million euros. Cabin crew union Ufo also staged strikes against the carrier in April.
The labour unrest coincided with broader operational upheaval. Regional subsidiary Cityline was shut down overnight in April with its 1,300 staff, leading to roughly 20,000 summer flights being cut. Some routes were transferred to the newly created Lufthansa City Airlines, a similarly named entity.