Delta agrees to multiyear raises for pilots, pressuring its rivals — and future profits

Extra Biscoff cookies for everyone… Yesterday Delta agreed to boost its pilots’ pay by at least 31% in a $7B+ deal that could end years of contract-negotiation clashes. In October, Delta pilots voted to strike if their union and the airline couldn’t reach an acceptable pay agreement. If the salary boost is approved, it’d be the first new pilots’ contract at a big airline since the pandemic began.

• New terms: Delta pilots would receive an 18% pay bump as soon as the contract is signed, with the rest paid over the next three years.
• New horizons: If the deal is OK’d, it could become the industry standard for contracts negotiated at rivals like American, United, and Southwest. Meanwhile, travelers may end up paying higher fares for longer.

Failure to launch… US travel is booming again, but pilots have been in short supply after thousands retired during the pandemic. As the industry returns to profitability and daily life gets pricier, pilots want higher comp. But negotiations have been turbulent: last month American Airlines pilots rejected a 19% pay-hike proposal, saying it wasn’t enough. In September, pilots from United, JetBlue, Spirit, Delta, and other airlines picketed at major airports for better pay and more reliable schedules.