Delta Air Lines Pilots Reach Wage Raise Deal, Strike Risk Disappears

After a tense round of negotiations with the directors of the aviation company, Delta Air Lines pilots have reached an agreement to defer pay increases for four years.

An offer to increase his salary by 18% as soon as a new contract is signed, and another 5% increase in salary next year; as well as an additional 4% two years later and a final adjustment of 4% in 2026, employees are convinced.

Also, Pilots will receive a lump sum payment of 22% of accumulated profits between 2020 and 2022, a strategy that reduces the likelihood of a strike occurring.

The proposed agreement also includes 10 weeks of paid maternity leave, two weeks of paid parental leave, and reduced health insurance premiums.

It should be noted that This agreement will guide contract negotiations between Delta’s airspace rivals United Airlines and American Airlines.

So far, airlines have benefited from the higher fares they offer consumers, but have operated without contract adjustments for their pilots for three years.

As soon as a new agreement is reached between Delta and its pilots, various analysts foresee further increases in airfare to make up for whatever was promised to staff.

“The unintended consequences of the Delta deal (in principle) will inevitably hit consumers in the form of higher tariffs. Given that the industry is still smaller than in 2019 but the economy has grown by about 15%, we believe the market can absorb these costs and airfare will rise.

In addition, it will likely spark a trading frenzy at American, United and Southwest,” Jamie Baker, an analyst at JP Morgan, said in a note to investors.