Delta pilots approve new contract with 34% increase

Delta Air Lines pilots on Wednesday approved a new contract that includes a 34% increase over four years and other improvements as the industry grapples with a protracted aviator shortage and strong travel demand.

Delta and the pilots’ union reached a tentative agreement in December. Wednesday’s ratification makes the Atlanta-based airline the first major U.S. airline to enter into a labor agreement with its 15,000 pilots since the start of the pandemic.

Pilot unions United, American and Southwest are still negotiating, though the Delta deal could spur other deals.

The Delta Pilots Union, Air Line Pilots Association, said the contract was supported by 78% of pilots.

The start of the Covid pandemic three years ago delayed negotiations with major airlines. Demand for travel has since rebounded, with airline executives saying the lack of pilots is limiting capacity growth, a factor that keeps airfare prices high.

“Pilots in general hit the iron when it’s hot,” said Savanti Seeth, aviation analyst at Raymond James. “They probably understand that this is the best time to make a deal.”

In January, Delta said that even with “all expected increases in labor costs,” non-fuel costs are expected to fall by up to 4%.

The new four-year contract includes an 18% increase on signing day, then 5% next year, 4% in 2025 and 4% in 2026.

Contract negotiations between airlines and unions have been tense at times as aviators push for higher pay and better schedules. Delta pilots voted last year to allow the union to sanction the strike when contract negotiations failed to reach an agreement and airline pilots picketed several times.

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Alaska Airlines pilots received a pay raise in their latest labor deal last year. JetBlue Airways and Spirit Airlines, which are awaiting a government response to the planned merger, recently struck deals with their pilots.

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