Delta Air Lines (DAL.N) has offered a 34% cumulative pay increase to its pilots over three years in a new contract, demonstrating the bargaining power aviators are enjoying in a short-staffed industry with booming demand.
The pilots will get a raise of at least 18% raise on the date the contract is signed, another 5% after one year, 4% after two years and 4% after three years, according to a draft contract seen by Reuters.
Delta pilots will also get a one-time payment equivalent to 22% of their earnings between 2020 and 2022 after the ratification of the deal.
In a memo to its members, the union representing Delta pilots said the deal represents more than $7.2 billion of cumulative value increases over the next four years.
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.”
If the deal is approved by Delta pilots, it is widely expected to act as a benchmark for contract negotiations at United and American.
Delta pilots have been working without a new contract for nearly three years after their old contract became amendable in December 2019, fueling frustration.
They voted overwhelmingly in October voted to authorize a strike if negotiators could not reach an agreement on the new contract.