Spirit Airlines ( NYSE: SAVE ) pilots have ratified an agreement with the low-cost carrier on Tuesday, according to the Air Line Pilots Association.
The new contract, which provides for a 34% raise over the next two years, was approved by 69% of voters. The new agreement is effective retroactively to January 1, 2023.
“This TA not only offers the financial gains our pilots need today, but also creates a stronger bargaining position for Spirit Airlines pilots at our next step, either in the merger process with JetBlue or in comprehensive negotiations with Spirit Airlines as a stand-alone carrier,” Spirit’s Master Executive Council chair Capt. Ryan Muller said in a statement provided to Seeking Alpha.
If the merger with JetBlue Airways ( JBLU ) fails or is abandoned, the pilots reserve the right to re-enter contract negotiations with management.
Shares of the Miami-based airline rose 0.88% in the latter half of Tuesday’s trading day.
Read more on the details of the contract offer extended in December .
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Spirit Airlines reaches agreement with pilots union