Delta Air Lines has offered its pilots a 34% cumulative pay increase over three years in a new contract, demonstrating the bargaining power aviators are enjoying in a short-staffed industry with booming travel demand.
Pilots Big Pay Day
Delta Airlines is offering their pilots a 34% raise over three years. The highest raise the aviation industry has seen in the last three years. The pilots are expected to get an 18% increase on the day the contract is signed. Then after one year, another 5% raise. Then another 8% increase over 5 years. If the deal is approved, industry insiders believe it could be the standard for United and American Airlines pilots who are also in negotiations.
Old Contract
Pilots at Delta have been working under the old contract for the past three years. With inflation and the cost of living post-pandemic, pilots had begun to voice their frustrations over the summer. Causing pilots to authorize a strike if negotiations did not agree soon.
Airline Industry Could Suffer
Unfortunately, these raises worry the airlines, as there are rumblings of a recession about to hit the United States. This could potentially mean that airlines would begin to raise fares and possibly have to borrow money to fund their day-to-day operations. If all those issues align, the airline industry will be in serious debt.
Regardless, pilots have all the leverage in these negotiations. The need for staff is at an all-time high across the airline industry.
Delta said it is “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.”