2023-12-01 13:08:38 ET
Southwest Airlines Co (NYSE: LUV) says it is now close to signing a preliminary deal with its pilots’ union. Shares of the air carrier are up 5.0% at writing.
What Southwest and pilots’ union have agreed on?
The Dallas-headquartered airline has agreed with the union on retirement plan, pay raise, and other items, as per Southwest Airlines Pilots Association.
Both sides are now working closely on an implementation schedule, the union added.
Note that the other three major U.S. airlines – American Airlines, United Airlines, and Delta Air Lines – have inked multibillion-dollar labour deals with pilots already.
American Airlines, pilots union reach labor deal: http://t.co/hzNONACOy0 pic.twitter.com/jXjSgeiVxS
— USA TODAY Travel (@usatodaytravel) January 5, 2015
The news arrives more than a month after Southwest Airlines reported weaker-than-expected revenue for its third financial quarter and said it will pump the brakes on capacity growth in 2024 due to moderating travel demand.
Southwest recently signed a deal with flight attendants
If the union does indeed approve the said preliminary agreement, it will then have to be ratified by the pilots.
Neither the airline nor its Pilots Association offered further insight into the potential deal. Southwest Airlines did, however, tell CNBC on Friday:
“Southwest and pilots’ union are working hard to close out the few remaining items. Southwest is committed to reaching an agreement that rewards our pilots and places them competitively in industry.”
Last month, the New York listed air carrier also announced a preliminary deal with its flight attendants that included a 36% pay increase. Shares of Southwest Airlines are still down about 30% versus their year-to-date high in mid-July.
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