Southwest Airlines reaches deal with Pilots Union

Southwest Airlines and its pilots union have reached a tentative agreement on a new, five-year labor contract that would raise wages and boost retirement benefits.

The union’s board approved the deal, which it says is worth $12 billion, on Wednesday and put it to a vote among more than 11,000 union members, who have until January 22 to vote.

The deal, details of which were not immediately made public, is expected to deliver benefits similar to those secured by pilot unions at the three other major U.S. airlines in separate negotiations this year. Pilots have had the upper hand in labor negotiations as they are in high demand amid air travel’s strong recovery after a sharp decline early in the pandemic.

“We know the past few years have been difficult for both our pilots and our customers,” Capt. Casey Murray, president of the Southwest Airlines Pilots Association union, said in a statement. He added that the agreement “rewards our pilots and improves reliability for our passengers.”

Relations between Southwest and the union have at times been contentious. In 2021, the union sued the airline over changes management made during the pandemic. Last year, the company and the union initiated federal mediation over contract talks. According to the union, Southwest pilots voted to strike in May for the first time in the company’s history, even though federal law prohibits pilots from leaving their jobs without first taking mediation and other steps.

Other pilot unions have made big gains. In March, Delta Air Lines pilots approved a contract that would increase wages by 34 percent over several years. Pilots at American Airlines approved a contract this summer that will give them a 46 percent pay increase, and pilots at United Airlines approved a 40 percent pay increase.

All three contracts include improvements to vacation and retirement benefits, and other changes including better protection against last-minute reassignments. The deals have also increased pressure on smaller airlines to improve pay and benefits to prevent pilots from leaving for larger airlines.

The Southwest Union said in a statement that the deal included “significant gains in compensation” and “improvements to work rules and flight schedules, better disability coverage and increases to retirement benefits.”

Pilots at major airlines easily earn six-figure salaries. The oldest pilots, who typically fly larger planes on longer routes, can earn several hundred thousand dollars a year. Labor and fuel account for about half of airline operating costs. In recent months, airline executives have warned that such costs could hit their profits.

If approved, the new Southwest deal would run through December 2028. The contracts at Delta, American and United all run through at least 2026.

There is no guarantee that Southwest’s pilots will approve the deal. The airline’s flight attendants rejected a deal this month, bringing negotiators back to the table. Flight attendants at American and United are also negotiating new contracts.