United Airlines and the union representing its pilots said Saturday they had reached agreement on a contract that would raise pilots’ wages by up to 40% over four years.
The union estimated the deal at about $10 billion. This came after more than four years of tumultuous bargaining, which included strikes and talk of voting to strike.
The deal reflects the leverage of business groups, particularly pilots, as airline revenues rise on a strong recovery in travel.
The Airline Pilots Association said the agreement, which is subject to a vote to ratify, would put United pilots on a par with their counterparts at Delta Air Lines, who have agreed to A pay raise deal earlier this year.
The union said the agreement includes significant wage increases, retirement benefits and job security.
At least in terms of pay, the deal looks much better than the one United Airmen rejected last November.
Once the deal is approved, pilots will receive immediate pay rate increases from 13.8% to 18.7%, depending on the type of aircraft they fly, followed by four smaller annual increases, according to a summary on the union’s website.
Over the course of the decade, pilot pay will rise from 34.5% to 40.2%.
Garth Thompson, president of the United Pilots Association, called it a “historic agreement” achieved thanks to the determination of the 16,000 pilots.
In a statement on LinkedIn social media, CEO Scott Kirby said, “We promised our global pilots the industry-leading contract they deserve, and we’re thrilled to have reached an agreement with ALPA on it.”
American Airlines pilots are set to begin voting July 24 on a bid that has an average cumulative raise of 41.5% over four years. Southwest Airlines pilots are still negotiating. America and Southwest have independent leagues, while Delta and United Airmen represent ALPA.
Unions believe they are in a strong bargaining position with airlines, which have received $54 billion in federal aid to help get through the pandemic, and have thrived on the resurgence of travel. The number of people traveling in the United States has nearly returned to pre-pandemic levels.
This week, Delta A Quarterly profit record Over $1.8 billion and record revenue for the April-June period which includes the first part of the summer travel season. United is due to report results on Wednesday, and analysts expect the airline to post profits of more than $1.3 billion, according to a survey by FactSet.