United Airlines Holdings Inc is offering its pilots a contract with an incremental value in excess of USD eight billion over four years, making it the richest labor deal for a mainline U.S. carrier, according to media report out on Tuesday, citing the company’s chief executive.
The move comes at a time when pilots in North America are pushing for better pay and working conditions during their talks with company managements over new employment contracts.
Despite economic uncertainties, the airline industry has achieved a noteworthy return to net profitability, with a 1.2 per cent net profit margin. The industry’s outlook is driven by rising revenues surpassing expenses, with passenger revenues projected to reach USD 546 billion. Additionally, an estimated 4.35 billion individuals are expected to travel in 2023, approaching the pre-pandemic figure of 4.54 billion recorded in 2019.
Delta Air Lines‘ landmark pilots contract, which offers USD seven billion in higher pay and benefits in March has put pressure on rival carriers to hand out similar deals ahead of a busy summer travel season. United‘s CEO Scott Kirby said that the company has been negotiating weekly to reach a formal agreement with the union.
However, he didn’t give details on the value of the pay, benefits and quality-of-life improvements included in the proposal other than to say that it would top the recent deals agreed to by its two biggest rivals, as per the report.
United did not immediately respond to a media request for comment.
