United Airlines pilots are set to receive a significant pay increase after the carrier reached a preliminary agreement with the pilots’ union. The agreement, still subject to ratification by the pilots, will result in pay rates rising between 34.5% and 40.2% over the course of four years. The deal is estimated to be worth around $10 billion, according to the Air Line Pilots Association (ALPA).
It is important to note that although this agreement could potentially mark the end of prolonged discussions about pay, United pilots may still reject the deal, as they did with a previous offer in November.
United CEO Scott Kirby expressed his satisfaction with the deal on LinkedIn, stating, “We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on it.”
In addition to the pay increase, the agreement also encompasses improvements to work-life balance, job security, work rules, retirement, and benefits, as outlined by ALPA.
The market responded positively to the news, as United stock rose by over 1% ahead of Monday’s trading session. The preliminary agreement helped alleviate uncertainty regarding labor costs for the airline.
However, while the United Airlines pilots reached an encouraging agreement, travelers faced another weekend of disruption due to severe weather conditions in the Northeastern United States. On Sunday, over 1,700 flights were canceled into, out of, and within the U.S., particularly affecting Newark Liberty International, John F. Kennedy, LaGuardia, and Boston Logan airports. JetBlue Airways, which operates extensively in the Northeast region, experienced the most significant impact from these cancellations – 322 flights were canceled (equivalent to 31% of its schedule), and an additional 485 flights were delayed.
Although cancellation rates decreased on Monday morning, approximately 250 flights had already been canceled as of 9 a.m. Eastern time. JetBlue accounted for 70 of these cancellations, representing 6% of its schedule.
In conclusion, United Airlines and its pilots are on the verge of finalizing a long-awaited pay agreement, signaling potential positive developments for both parties. However, severe weather has continued to disrupt air travel, inconveniencing countless passengers over the weekend and into the following week.