Germany's flagship carrier has settled a long-running dispute with the cabin crew union UFO after six months of arbitration. Full details of the plan will be revealed next week.
The two sides "have come to a comprehensive agreement," the union said in a statement Thursday.
The deal, which will be formally accepted on July 5, follows a bitter industrial dispute that has lasted nearly two years and led to the airline's longest ever walkout.
Lufthansa management faced possibly their biggest ever test when they set out to cut costs and reduce pension expenses in the face of competition from low-cost rivals such as Easyjet and Ryanair.
But the UFO union, which represents around 19,000 workers, staged multiple strikes to press its demands.
Last November, cabin staff staged a seven day stoppage, which led to the cancellation of 4,700 flights and left more than half a million passengers grounded.
Although the union agreed in January to a 2.2 percent pay rise for flight attendants and a one-off 3,000 euro ($3,300) cash payment for last year, the two sides went to arbitration to negotiate outstanding issues, including early retirement provision and working conditions.
Thursday's deal was reached under the mediation of Matthias Platzeck, the former Social Democrat president of the regional state of Brandenburg.
Lufthansa has also faced multiple strikes by its pilots and reached a wage deal for its 30,000 ground staff last November.
mm/cw (AFP, AP)