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Amsterdam, Netherlands: KLM Royal Dutch Airlines has reached a new collective labour agreement (CLA) with its cabin crew unions, bringing an end to months of negotiations and restoring labour stability at the Dutch flag carrier. The agreement was concluded with unions VNC, FNV Cabine and De Unie and has been approved by union members. The two-year agreement runs from 1 March 2025 through 28 February 2027 and applies retroactively. KLM said the deal balances improvements in purchasing power for cabin crew with the airline’s ongoing focus on cost control and operational reliability. Under the agreement, cabin crew will receive a phased salary increase totalling approximately 3.25 percent over the contract period. In addition, KLM will pay a one-time net allowance of €750 to full-time cabin crew in January 2026 as compensation for inflationary pressures. Beyond pay, the agreement includes updates to working arrangements and long-term employability measures. These include continued access to the 80-90-100 scheme, which allows older cabin crew to work reduced hours while maintaining pension accrual, as well as provisions for temporary early retirement (RVU). The CLA also introduces clearer rules on internal mobility, allowing cabin crew who move to ground positions to return to flying roles under defined conditions. KLM said the agreement provides clarity and predictability for both employees and operations, particularly after a period marked by industrial actions and staffing pressures at Amsterdam Schiphol Airport. Labour stability among cabin crew is seen as critical for maintaining schedule reliability across KLM’s short-haul and long-haul networks. The deal follows earlier labour agreements reached with other employee groups at KLM, reflecting a broader effort by the airline to normalise labour relations while navigating higher costs, supply-chain pressures and capacity constraints affecting the global aviation industry. Union representatives described the agreement as a compromise, noting that while it does not meet all earlier demands, it secures wage growth, safeguards employment conditions and preserves important flexibility schemes for cabin crew.

KLM Finalises Labour Agreement With Cabin Crew Unions After Months Of Negotiations

Aviation Today News Desk / January 7, 2026

Amsterdam, Netherlands: KLM Royal Dutch Airlines has reached a new collective labour agreement (CLA) with its cabin crew unions, bringing […]

New Delhi, India: India’s largest airline IndiGo has announced a significant revision of pilot allowances, effective January 1, 2026, in an effort to address morale issues, strengthen retention and ensure smoother flight operations following widespread cancellations earlier this month. The allowance revisions were communicated in an internal email sent to IndiGo’s pilots by Ashim Mittra, Senior Vice President for Flight Operations, outlining the updated pay and allowance structure. It increases key components of pilot compensation across a range of duty types, including domestic layovers, deadhead travel, night flying, transit stops and tail‑swap operations. Under the revised structure: Domestic layover allowances for stays between 10:01 and 24 hours have been raised by about 50% captains will receive ₹3,000 (up from ₹2,000) and first officers ₹1,500 (up from ₹1,000). Deadhead travel allowances paid when pilots reposition as passengers have increased to ₹4,000 for captains and ₹2,000 for first officers. Night flying compensation has been standardised to a fixed payment of ₹2,000 per hour for captains and ₹1,000 for first officers. Tail‑swap allowance, a new category for duties involving a change of aircraft mid‑duty, has been introduced at ₹1,500 for captains and ₹750 for first officers. Transit allowances for extended ground halts beyond 90 minutes have also been adjusted upwards. The revisions come after a turbulent December, during which IndiGo cancelled thousands of flights, leaving hundreds of thousands of passengers stranded amid challenges in crew rostering under stricter Flight Duty Time Limitations (FDTL) norms. According to industry reports, the airline’s failure to sufficiently staff pilots in anticipation of the new regulations led to widespread operational disruptions. In response, the Directorate General of Civil Aviation (DGCA) ordered a reduction in IndiGo’s winter schedule and has been engaged in ongoing regulatory oversight. IndiGo, which employs roughly 5,000 pilots and controls around 65% of India’s domestic market, has faced criticism from some pilot groups and aviation analysts for fatigue‑linked rostering pressures and competitive hiring practices by foreign carriers. While the airline has not publicly commented on the revisions, industry experts say the allowance uplift represents a strategic move to stabilise operations ahead of the peak travel season and improve pilot retention amid intensified competition. Regulatory sources indicated that the airline’s leadership has held dialogue with pilot representatives at several operational bases in recent weeks.

IndiGo Raises Pilot Allowances As Airline Addresses Crew And Rostering Pressures

Aviation Today News Desk / December 30, 2025

New Delhi, India: India’s largest airline IndiGo has announced a significant revision of pilot allowances, effective January 1, 2026, in

Frankfurt, Germany: Lufthansa Group announced on Monday that it plans to eliminate around 4,000 administrative positions by 2030 as part of a wider restructuring strategy aimed at boosting profitability and efficiency through automation, artificial intelligence, and streamlined operations. In recent years, the airline has faced challenges in controlling costs and driving growth amid labor issues. Last year, it issued two profit warnings and the 8% margin target was postponed to 2028–2030. The job reductions will primarily affect back-office, headquarters, and shared service roles in Germany. Flight operations, including pilots and cabin crew, are not expected to be impacted. The decision was unveiled during Lufthansa’s Capital Markets Day, the airline’s first in six years where executives presented new financial targets. The group now aims for an adjusted operating margin of 8 to 10 percent by 2028, annual free cash flow exceeding €2.5 billion, and a 15 to 20 percent return on capital employed before taxes. Alongside workforce cuts, Lufthansa confirmed plans to modernize its fleet with the delivery of more than 230 new aircraft by the end of the decade, including about 100 long-haul planes. Management said the investments, combined with digitalization, will drive efficiency across its airlines: Lufthansa, Swiss, Austrian Airlines, Brussels Airlines, ITA Airways, and Eurowings. Chief Executive Carsten Spohr emphasized the need for structural change, noting that consolidation of overlapping functions and the use of digital tools will “make the group more competitive and resilient.” The announcement sparked criticism from German labor unions. Representatives from Ver.di, one of the country’s unions, warned of the social consequences of the cuts and demanded government oversight. Markets, however, reacted positively. Lufthansa’s shares rose nearly 2 percent following the announcement, reflecting investor confidence in the group’s ability to deliver stronger returns. The company stressed that the job reductions will be gradual and spread over five years, easing the transition for employees and giving time to implement retraining or redeployment measures. On the contrary, earlier this year, Lufthansa had announced plans to hire approximately 10,000 new employees throughout 2025. The recruitment drive covered a wide range of roles, including more than 2,000 flight attendants, 1,400 ground operations staff, 1,300 technical experts, 1,200 administrative roles, and around 800 pilot positions. A significant portion of these new jobs was expected to be located in Germany, reflecting Lufthansa’s efforts to strengthen its domestic operations. Among its subsidiaries, Lufthansa Technik alone planned to add over 2,000 staff, while Austrian Airlines and Eurowings each aimed to hire roughly 700 employees. The group reported that in 2024 it had onboarded more than 13,000 new employees and, over a three-year period, had hired over 30,000 staff globally.

Lufthansa Group to Cut 4,000 Jobs by 2030, Sparks Labor Union Outrage in Germany

Aviation Today News Desk / September 30, 2025

Frankfurt, Germany: Lufthansa Group announced on Monday that it plans to eliminate around 4,000 administrative positions by 2030 as part

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