United Airlines Pilots Accept New Labor Contract, Reports Reuters

United Airlines pilots have officially ratified a four-year contract that features significant pay increases and enhanced benefits, according to a statement from their union.

The Air Line Pilots Association, International (ALPA) reported that 82% of the airline’s pilots voted in favor of the new agreement, which adds over $10 billion in value to the existing contract. Approximately 97% of eligible pilots participated in the voting process.

Under the terms of the new contract, pilots will see a cumulative pay increase ranging from 34.5% to 40.2%. Additionally, there are improvements in work-life quality, sick leave, work rules, vacation time, and an increase in retirement benefits for the 16,000 pilots employed by United.

Following this announcement, shares of the Chicago-based airline saw a 1.5% rise in morning trading.

The U.S. airline industry is facing a persistent pilot shortage, exacerbated by the exit of many aviators during the pandemic. Analysts project that the country is currently short approximately 10,000 pilots.

As travel demand rebounds, airlines are scrambling to hire additional staff, which has enhanced pilots’ negotiating power. ALPA had previously rejected an offer from United, which obliged the airline to enhance its contract terms.

Earlier this year, pilots at Delta Air Lines also ratified a new contract that includes over $7 billion in cumulative wage and benefit increases over four years.