On Friday, the Air Line Pilots Association, International (ALPA) announced that United Airlines pilots have agreed to a new four-year contract. The agreement includes a substantial pay raise and various other benefits.
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The committee representing the pilots revealed that over 80% of the pilots voted in favor of the new comprehensive working agreement, which will add more than $10 billion of value to the current contract. A staggering 97% of qualified pilots participated in the ballot.
Under the new four-year contract, United's 16,000 pilots will receive a cumulative pay increase of 34.5% to 40.2%. In addition, they will enjoy better work-life balance, improved sick leave, vacation time, work rules, and increased retirement benefits. The airline's shares rose 1.5% in the morning trade after the announcement of the ratified agreement.
Due to the pandemic, many pilots left the aviation industry, leaving the United States with a shortage of around 10,000 pilots, which is expected to last for years. As air travel rebounds, airlines are now competing to recruit more pilots, giving pilots more bargaining power. In response, United had to improve its terms after ALPA rejected its initial offer last year. Delta Air Lines pilots also agreed to a new contract earlier this year, which includes over $7 billion in cumulative wages and benefits over four years.
