Deutsche Lufthansa AG, Europe's second-largest airline, will cancel 3,800 flights this week, affecting 425,000 people as it braces for a three-day strike by pilots seeking better wages and retirement benefits.

The cuts, slated for April 2 to April 4, represent the vast majority of flights for those day, the German airline said in a release, calling the labor action among the most severe in its history. The disruption will cost the Frankfurt-based carrier more than 10 million euros ($14 million), it said. There will only be about 500 flights operating, Lufthansa said.

Lufthansa has made contact with the Vereinigung Cockpit pilots' union as its seeks to negotiate a breakthrough that would avoid additional flight disruptions. The airline on March 27 canceled one in three flights for the day as German airport employees walked off work amid a union push for higher pay.

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