Lufthansa Shares Close Higher After Second Pilot Strike Averted

By Scott Kanowsky 

Investing.com -- Deutsche Lufthansa AG (ETR:LHAG) shares closed in the green on Tuesday, after the German carrier and the union representing thousands of its pilots agreed on a deal to avoid another strike that threatened to ground more flights during the key summer travel season.

In a statement, the Vereinigung Cockpit union said it had called off the labor action, which was initially scheduled for this week, after it reached terms over a new wage package with Lufthansa.

VC did not elaborate on the agreement, saying only that it marked "important first steps" towards forging a long-term solution.

According to Lufthansa, the VC's latest demands include an annual pay increase of 8.2% beginning in 2023 on top of a 5.5% salary bump this year. Lufthansa added that it would make an improved offer.

"We are pleased we were able to reach a solution in constructive talks with the Vereinigung Cockpit pilots' union," Lufthansa said in a statement quoted by Reuters, but did not give further details.

VC, negotiating on behalf of more than 5,000 Lufthansa pilots, previously called for a strike last Friday following the collapse of wage talks.

The one-day labor action forced the cancellation of hundreds of Lufthansa flights. The company, which saw its share price fall sharply when the walk-out was first announced, estimated that 130,000 passengers were impacted.