NEW YORK – United Airlines pilots reached agreement with the company on Saturday on a contract valued at US$10 billion (S$13.2 billion) that would increase pay by up to 40 per cent over four years.
The proposed contract offers another big wage victory for pilots in the United States after a deal with Delta Air Lines was approved in March. The substantial raises are a reflection of a shortage of pilots in the US and the strong recovery in demand for air travel.
In addition to the higher compensation, the agreement provides better job security and, work, vacation and retirement benefits, among other perks.
At a major airline such as United, pilots easily earn six-figure salaries. The most senior pilots, who typically fly larger planes on international routes, can earn several hundred thousand dollars a year.
In a statement, United said the deal would help its “United Next” strategy, an expansion plan that includes the purchase of larger planes to increase the number of seats per flight in North America by almost 30 per cent and the number of premium seats per flight by 75 per cent by 2026.
“We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement,” United chief executive Scott Kirby wrote on social media network LinkedIn.
Union officials said the agreement was the result of four years of negotiations and represented a “landmark” deal in the airline industry as travel demand rose following a steep drop at the height of the Covid-19 pandemic.
In March, Delta approved a contract that increases wages by 34 per cent by 2026 and includes improvements to scheduling, retirement and other benefits. Delta’s deal raised the standard for pilot compensation and benefits.
The shortage of pilots is the result of the airlines reducing the number of pilots through buyouts and retirements when air travel was significantly curtailed early in the pandemic. But with rapidly growing demand for airline flights over the past year, the carriers have been increasing pilot pay and benefits as they hire thousands to fill the depleted ranks.
NYTIMES
