Delta pilots approve recent contract with 34% raises

Delta Air Lines pilots on Wednesday approved a recent contract that features 34% raises over 4 years and other improvements because the industry faces a protracted shortage of aviators and robust travel demand.

Delta and the pilots’ union had reached a preliminary agreement in December. Wednesday’s ratification makes the Atlanta-based airline the primary of the most important U.S. carriers to finalize a labor agreement with its 15,000 pilots for the reason that pandemic began. United, American and Southwest pilots’ unions are still in negotiations though Delta’s deal could spur other agreements.

Delta’s pilots’ union, the Air Line Pilots Association, said the contract won support from 78% of pilots.

“From the start of the negotiations process, we got down to deliver the industry’s best pilot contract to the industry’s best pilots, one which keeps us as a top destination for U.S. aviation careers, and this contract is a mirrored image of that unwavering commitment,” Delta operations chief John Laughter said in a news release on Wednesday.

The beginning of the Covid pandemic three years ago had delayed negotiations at major airlines. Travel demand has since rebounded, and airline executives have said pilot shortages have limited capability growth, an element that has kept airfares high and helped airlines return to profitability.

“The pilots as an entire are striking when the iron is hot,” said Savanthi Syth, airline analyst at Raymond James. “They probably realize that is the very best moment in time to get a deal done.”

In January, Delta said that even with “all expected labor cost increases” it expects a drop of as much as 4% in nonfuel costs.

The brand new four-year contract includes 18% raises on date of signing, then 5% next 12 months, 4% in 2025 and 4% in 2026. Pilot pay varies based on aircraft type and years of experience.

Contract talks between airlines and labor unions have been fraught at times, as aviators seek higher pay and higher schedules. Delta’s pilots last 12 months voted in favor of allowing the union to authorize a strike when contract talks hadn’t yielded an agreement, and the airline’s pilots picketed several times.

American Airlines pilots’ union last 12 months rejected a proposal for 19% raises in a two-year contract. On Wednesday, American said the Delta deal “profoundly changes the economics for the whole industry and that is great news for American’s pilots.

“Our commitment to paying our team members well and competitively stays unchanged, and we look ahead to reaching an agreement with [the Allied Pilots Association] quickly in order that American’s pilots, too, can profit from these meaningful enhancements to their pay and quality of life,” it said.

Alaska Airlines pilots won raises of their latest labor deal last 12 months. JetBlue Airways and Spirit Airlines, that are awaiting a government response to their planned merger, have each struck deals with their pilots recently.

Regional airlines, where the pilot shortage has been most severe, have also hiked pay recently to draw and retain pilots.