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Germany's Verdi union clinches pay deal for Lufthansa City Airlines staff

Published by Global Banking & Finance Review

Posted on April 10, 2026

3 min read

· Last updated: April 11, 2026

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Germany's Verdi union clinches pay deal for Lufthansa City Airlines staff
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BERLIN, April 10 (Reuters) - Germany's Verdi union said on Friday it has agreed a first collective wage deal with Lufthansa City Airlines for around 500 cockpit and cabin staff. The deal will boost

Lufthansa strike disrupts tens of thousands of passengers as City Airlines secures pay deal

Major Disruptions and Labour Developments in Lufthansa Group

Widespread Travel Disruption Across Germany

BERLIN, April 10 (Reuters) - Tens of thousands of passengers faced travel disruption across Germany on Friday as cabin crew at Lufthansa and its regional unit Lufthansa CityLine staged a day-long strike, while the group's newest subsidiary, Lufthansa City Airlines, signed its first labour agreement.

The industrial action was organized by union UFO and will last from midnight to 10 p.m. (2000 GMT).

Flight Cancellations and Passenger Impact

Fraport, the operator of Frankfurt Airport, on Friday morning said about 580 flights were cancelled, affecting roughly 72,000 passengers out of 1,350 scheduled flights and 155,000 passengers expected for the day.

The figures, Fraport noted, cover all airlines operating at the airport, not just Lufthansa, and may evolve as the day progresses.

Sharp Contrast with City Airlines

SHARP CONTRAST WITH CITY AIRLINES

Strike Effects and Union Response

The Lufthansa strike impacted Munich as well as Frankfurt, its main hubs , while CityLine cabin crew walked out at nine airports. Lufthansa brand chief Jens Ritter criticized the action as "completely disproportionate." UFO negotiators said escalation was inevitable given stalled talks.

City Airlines Secures Labour Agreement

The walkout stands in sharp contrast to developments at Lufthansa City Airlines, the group's newest and smallest subsidiary, where the rival union Verdi secured the carrier's first collective wage agreement covering 500 cockpit and cabin staff. 

Details of the Pay Deal

The deal, reached after marathon talks last week, will lift basic salaries by between 20% and 35% in three stages through March 2029, and includes extra days off, more vacation, improved roster planning and expanded pension support, Verdi said.

Impact of Low-Cost Competition

IMPACT OF LOW-COST COMPETITION

Restructuring Within Lufthansa Group

The diverging fortunes of the two subsidiaries reflect a broader restructuring underway inside the Lufthansa Group. Lufthansa operates long-haul and major European routes through its mainline airline, while short-haul feeder flights have historically been handled by CityLine.

Transition from CityLine to City Airlines

The group has said it plans to close CityLine by year-end, with its feeder operations transitioning to City Airlines, which was founded in 2022 as a cost-efficient alternative amid growing competitive pressures in Europe's aviation industry.

Concerns Among CityLine Staff

The closure plan has sparked anger among CityLine's staff, who fear job losses and uncertain futures. 

(Reporting by Klaus Lauer; Writing by Kirsti Knolle; Editing by Miranda Murray and David Holmes)

Key Takeaways

  • This marks the first collective wage deal for Lufthansa City Airlines’ ~500 cockpit and cabin crew under the Verdi union.
  • Wages will rise by 20–35% in three phases, offering significant pay growth compared to prior group deals.
  • The agreement also includes non‑wage improvements—extra leave, improved scheduling and pension contributions—bringing Germany’s working‑conditions expectations more fully across the regional subsidiary context.

Frequently Asked Questions

What union reached a pay deal with Lufthansa City Airlines?
Germany's Verdi union clinched a collective wage agreement with Lufthansa City Airlines.
How much will salaries increase for Lufthansa City Airlines staff?
Basic salaries will rise by 20-35% in three stages over several years.
How many Lufthansa City Airlines employees are covered by the new pay deal?
Around 500 cockpit and cabin staff are covered by the agreement.
What additional benefits are included in the wage deal?
Additional benefits include extra leave, better scheduling, and enhanced pension contributions.

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