The dispute over pay between Lufthansa and its pilots looks to be coming to an end as both groups have agreed to mediator recommendations.

The two groups said they agreed to the mediator’s recommendation of an annual pay rise of 2% backdated to January 2016, another rise of 2.3% from January 2017, another rise of 2.4% in 2018 and a further 2% in 2019.

There is also an additional one-off payment amounting to a total of approximately €30m, which is expected to total around €5,000 to €6,000 per full-time employee.

The new agreement will cover Lufthansa, Lufthansa Cargo and Germanwings and will run until the end of 2019.

Lufthansa said that implementing the agreement would cost around €85m per year. The dispute resulted in strikes late last year.

The agreement will now be voted on by members of the Vereinigung Cockpit union.