Southwest Airlines and its pilots' union are on the verge of finalizing a new labor agreement before the holiday season, according to an insider familiar with the discussions. The airline's shares increased by 3.4% in the afternoon trading session.
.gif)
The finalization of the agreement might take a few weeks due to some unresolved issues, the insider revealed without disclosing the specifics of the deal. In a statement to Reuters, Southwest said that both negotiation teams are diligently working to resolve the remaining issues.
The company is committed to finalizing a deal that benefits its pilots and ensures their competitive position in the industry. Pilots and flight attendants in North America have been advocating for improved pay and work conditions during their contract negotiations with the company. In October, the airline reached a preliminary agreement with the Transport Workers Union Local 556, which represents almost 19,000 flight attendants.
Earlier this year, major airlines such as American Airlines, Delta, and United Airlines successfully negotiated agreements with their respective pilot unions. CNBC was the first to report that Southwest was close to finalizing a new contract with the union.
