United Airlines and the union representing its pilots said Saturday they reached an agreement on a contract that can raise pilot pay by as much as 40% over 4 years.
The union valued the agreement at about $10 billion. It followed greater than 4 years of tumultuous bargaining that included picketing and talk of a strike vote.
The deal reflects the leverage enjoyed by labor groups, especially pilots, as airline revenue soars on the strong recovery in travel.
The Air Line Pilots Association said the agreement, which is subject to a ratification vote, would put United pilots on par with counterparts at Delta Air Lines, who approved a pay-raising deal earlier this 12 months.
The union said the agreement includes substantial increases in pay, retirement advantages and job security.
At the very least on pay, the deal appears much better than one which United pilots rejected last November.
Once the deal is approved, pilots will get immediate wage-rate increases of 13.8% to 18.7%, depending on the sort of plane they fly, followed by 4 smaller annual raises, in accordance with a summary on the union’s website.
Pilot Omar Morsi checks controls within the cockpit of a United Airlines Boeing 777 aircraft at Newark Liberty International Airport in Newark, Latest Jersey, on March 9, 2023.AFP via Getty Images
Over the course of the contract, pilot pay would rise 34.5% to 40.2%.
Garth Thompson, chair of the United Pilots’ union, called it an “historic agreement” that was made possible by the resolve of the 16,000 pilots.
In a press release on the LinkedIn social media site, CEO Scott Kirby said, “We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on it.”
Pilots at American Airlines are scheduled to start voting July 24 on a suggestion that features average cumulative raises of 41.5% over 4 years. Southwest Airlines pilots are still negotiating.
American and Southwest have independent unions, while pilots at Delta and United are represented by ALPA.
The unions imagine they’re in strong bargaining position with airlines, which took $54 billion in federal aid to assist get through the pandemic, booming due to a resurgence in travel.
The number of individuals flying within the U.S. is roughly back to pre-pandemic levels.
This week, Delta reported a record quarterly profit of greater than $1.8 billion and record revenue in the course of the April-through-June period that features the primary a part of summer travel season.
United is scheduled to report results Wednesday, and analysts expect the airline to post a profit of greater than $1.3 billion, in accordance with a FactSet survey.
