Lufthansa, UFO Union Strike Wage Deal, Avert Strike

Lufthansa and cabin crew union UFO reached an agreement on wage increases on Tuesday, averting all-out strikes at the last minute.

Lufthansa said in a statement the agreement included a 4.2 percent wage increase for around 16,000 cabin crew effective from January 2009 and valid for 14 months.

The parties also agreed on one-off payments of EUR100, profit sharing for 2008 of up to 3 percent of staff base salary and improved working conditions.

Pushing for a better offer, cabin crews represented by UFO had staged protests twice, forcing the carrier to cancel dozens of flights and cope with delays.

Last July, Lufthansa's passenger numbers were hit by strikes by ground staff and cabin crew as well as walkouts by regional pilots that forced the carrier to cut flights.

Lufthansa is due to report full-year 2008 earnings on Wednesday.

The company last month raised its outlook, saying its fourth quarter had yielded stronger results than expected, aided by lower fuel costs.