Southwest Airlines ranked because the second-best domestic airline, in line with Bounce’s 2023 Airline Index.
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Southwest Airlines and its pilots’ union have reached a latest preliminary labor agreement, ending months of tense negotiations.
Southwest is the last of the most important U.S. airlines to strike a deal that is about to present pilots big raises.
The union didn’t immediately provide details concerning the pay increases, however the five-year deal is value about $12 billion, Casey Murray, president of the Southwest Airlines Pilots Association, told CNBC on Tuesday. Compared, larger rival United Airlines‘ latest four-year pilot contract is value about $10 billion, in line with the aviators’ union.
Southwest’s pilots might want to approve the contract. CNBC reported earlier this month that the 2 sides were near a deal.
“We’re pleased to succeed in an Agreement in Principle with the Southwest Airlines Pilots Association for Southwest’s greater than 10,000 Pilots,” Southwest said in a press release. “The AIP is a key milestone in the method, and we stay up for the following steps.”
American, United and Delta finalized pilot deals earlier this 12 months that were value billions and gave aviators double-digit pay hikes. The Covid-19 pandemic derailed negotiations across the sector, pausing pay increases across the highly unionized industry even when demand returned and inflation hit multidecade highs.
As travel demand snapped back, pilots, flight attendants and other aviation staff have pushed for not only higher pay, but in addition higher working conditions resembling more predictable schedules.
Southwest pilots and flight attendants have complained about erratic schedules, particularly during disruptions. One driver of Southwest’s holiday meltdown last 12 months, which stranded some two million customers, was old software that left crews out of position for rescheduled flights. The U.S. Department of Transportation fined the airline $140 million for its handling of the crisis, it announced Monday.
Southwest’s flight attendants recently rejected a preliminary deal in a vote, though the union has said there might be a re-vote, citing complaints about technical glitches in online voting.
Labor unions have flexed their power all year long, yielding a string of big labor deals including agreements between Hollywood studios and actors, and the studios and writers, in addition to between automakers and the United Auto Staff union. Those agreements followed prolonged strikes.