Proactive Investors - Southwest Airlines (NYSE:LUV) pilots have secured a new tentative contract agreement that includes improved compensation and conditions after more than three years of negotiations.
The Southwest Airlines Pilots Association (SWAPA) board, which represents about 11,000 of the airline’s pilots, on Wednesday approved the tentative agreement.
SWAPA said the new agreement runs through until December 2028 and would provide “significant gains” in compensation.
The pilots would get about a 50% pay raise over five years and the deal is valued at $12 billion according to SWAPA, Reuters reported.
It also includes improvements to work rules and flying schedules, better disability coverage, and increases to retirement benefits, the pilots’ association said.
Pilots can vote on the tentative agreement until January 22.
“We know that the last few years have been difficult for our pilots as well as our customers, but we believe that this tentative agreement rewards our pilots as well as improving reliability for our passengers,” SWAPA President Captain Casey Murray commented.
Southwest vice president of labor relations Adam Carlisle said he was pleased the airline’s pilots would soon get to vote on the tentative agreement.
“Our pilots are exemplary aviators, and this agreement would give them industry-leading pay rates, and numerous quality-of-life enhancements, while also providing opportunities for operational efficiencies,” Carlisle said in a statement.
Southwest shares traded 1.1% higher at US$29.39 before Thursday’s opening bell.