Delta’s pilots are poised to get a substantial raise. The deal is a win for the pilots’ union but could hit your wallet the next time you fly.
Preliminary Agreement
Delta Airlines and its pilots’ union are announcing a preliminary agreement that will raise pilot pay by more than 30 percent over 4 years. The deal also includes a one-time signing bonus, increased maternity leave, 2 weeks of paid paternity leave, and better insurance premiums. There’s also a clause that guarantees Delta pilots will earn more than those flying for American Airlines and United Airlines by at least 1 percent.
The numbers break down like this:
- Pilots will get an immediate 18 percent raise as soon as the deal is signed
- They will get another 5 percent bump after year 1
- A 4 percent raise after year 2
- And another 4 percent raise after 3 years
Delta Airlines is praising the proposed deal as a win for both the company and the pilots. The airline says in a statement, “we are pleased to have reached an agreement in principle for a new pilot contract, one that recognizes the contributions of our pilots to Delta’s success.”
The pilots’ governing body must now approve the deal in a vote set for January 2023. It will then go to the entire union for a vote.
Ticket Prices
Airlines across the industry are reporting an increase in passenger travel in recent months, but there remains a staffing shortage due to the air travel collapse during the COVID-19 pandemic. That shortage is causing pilot frustration and exhaustion, plus canceled routes throughout the country. With limited routes and holiday travel coming up, ticket prices are already skyrocketing. And many industry leaders think the new pay deal at Delta Airlines will cause ticket prices to go even higher. If other major US airlines follow suit, you could expect to see increased airline ticket prices in the coming months as airlines try to maintain their balance sheets and not go into debt.
Industry Standards
The deal between Delta Airlines and its pilots comes after years of contract negotiations that were temporarily put on hold during the COVID-19 pandemic and subsequent air travel decline. But now that air travel is returning to pre-pandemic levels, airline pilots across the industry are demanding higher wages to keep up with demand. Pilot unions for American Airlines and United Airlines are hoping the Delta deal will add momentum to their fights for increased wages.
“Without question, bargaining progress by one airline will stimulate other ongoing labor negotiations in our industry,” the Allied Pilots Association, which represents 15,000 American Airlines pilots, said in a statement.
Southwest Airlines and its pilots’ union recently used an outside mediator to help the two sides reach an agreement over pilot salaries. In a statement, Southwest says it’s considering industry standards to navigate their negotiations. “We remain committed to working toward an agreement that meets our Pilots’ needs and solidifies Southwest’s standing as an employer of choice for Pilots.”
In the past month, pilots at both United and American have turned down pay raise deals, saying they aren’t enough to cover the increased cost of living.
