LUV - Southwest Inks $12B Contract As Pilots Take Flight With 50% Pay Rise Over 5 Years | Benzinga
In a recent development, the pilots of Southwest Airlines Co (NYSE:LUV) have agreed to a new labor deal that will see their pay increase by approximately 50% over the next five years.
What Happened: The Southwest Airlines Pilots Association, representing some 11,000 pilots, has been in negotiations with the airline for improved pay, retirement benefits, disability insurance, and a revised scheduling process since the previous contract expired in September 2020, Reuters reported on Tuesday.
The new $12 billion contract, which received a 93% approval from the pilots, will see an immediate pay raise of 29.15% for the Dallas-based carrier’s pilots. This will be followed by 4% raises in 2025, 2026, and 2027 and a 3.25% wage increase in 2028.
With the aviation industry recovering from the pandemic, airlines are offering lucrative contracts to attract and retain pilots. Last year, ...