Air Freight News

Southwest pilots secure 50% in pay hikes with contract approval

Southwest Airlines Co. pilots approved a new contract that would boost pay 50% over five years, wrapping up a multiyear round of negotiations and protests across the industry that resulted in record-setting agreements at the four largest US carriers. 

The contract was approved by almost 83% of the 99% of members who voted, according to the Southwest Airlines Pilots Association.

“This agreement justly rewards our pilots and supports our operational needs,” Adam Carlisle, Southwest’s vice president for labor relations, said in a statement. 

With the vote, Southwest becomes the last of the top four US airlines to secure new pilot deals in less than 12 months. Aviators who had worked through the pandemic picketed outside of company offices, shareholder meetings and airports while their unions worked to secure agreements with higher pay and improved work-life balance as carriers pulled in record revenue.

Southwest’s contract includes a 29.15% pay increase upon approval, followed by annual raises of 4% each on the first day of 2025, 2026 and 2027, plus a 3.25% increase on Jan. 1, 2028. The 50% boost is on a compounded basis, the union said. Pilots also secured updated work rules and flying schedules, along with better disability coverage and increases in retirement benefits. 

Under the agreement, captains with at least 12 years seniority would see their pay climb to $368.47 per “trip” from $317.25, while a first-year first officer would have an increase to $135.20 from $116.41, according to the union.

The four-year accord approved by United Airlines Holdings Inc. pilots in September was valued at $10.2 billion over its term, making it the costliest ever for a US airline. Delta Air Lines Inc. and American Airlines Inc. aviators also secured multibillion dollar deals. Labor vies with fuel as the top expense for airlines, and pilots are the highest paid among union workers. 

United and Delta pilots are represented by the Air Line Pilots Association, while aviators at American are members of the Allied Pilots Association.

Bloomberg
Bloomberg

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© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

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