United Airlines pilots reach 'historic' agreement in principle, with big pay raises, other perks

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United Airlines and the union representing its pilots said Saturday they reached agreement in principle on a contract that will raise pilot pay by up to 40% over four years.

Over the course of the proposed four-year contract, pilots would receive 34.5% to 40.2% increase in pay, the Air Line Pilots Association (ALPA) said in a press release.

United Airlines jetliner parked at airport tarmac, featuring Star Alliance logo and various text markings, San Francisco International Airport, San Francisco, California, June 7, 2023. (Smith Collection/Gado/Getty Images / Getty Images)

Garth Thompson, chair of the United pilots’ union, called it an "historic agreement" that was made possible by the resolve of the 16,000 pilots.

Ticker	Security	Last	Change	Change %
UAL	UNITED AIRLINES HOLDINGS INC.	95.24	+0.84	+0.89%

Along with a significant pay increase, the proposed contract includes improvements in quality of life, vacation, and other benefits to pilots who have faced a turbulent working conditions since the COVID-19 pandemic.

UNITED AIRLINES PILOTS UNION MOVES CLOSER TO STRIKE

"We're pleased to have reached an agreement with ALPA," United Airlines CEO Scott Kirby said. "The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy,"

Thousands of United pilots, represented by the Air Line Pilots Association International (ALPA), are participating in a nationwide picket on Friday as they push for higher pay. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

Pilots with the Chicago-based airlines have not had a contract with the airline for four years as pilots demanding better conditions from management.

UNITED AIRLINES PILOTS PICKET DEMANDING WAGE INCREASES AS AIRLINES THREATEN STRIKE

United's contract came up for renewal in 2019, and negotiations have been underway since.

Last year, its pilots overwhelmingly voted against a tentative contract, which the union said fell short of what members were seeking. Since then, United pilots have been protesting for a better deal.

United Airlines pilots picket outside San Francisco International Airport (SFO) in San Francisco, California, US, on Friday, May 12, 2023. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

Union's representing the pilots believed they were in a strong position to renegotiate a strong contract following the resurgence of traveling post pandemic as well as Delta Air Lines and American Airlines recently receiving industry-leading contracts.

Delta Air Lines ratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years.

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Industry officials say Delta's new contract has become a new benchmark for contract negotiations in North America. Rival American Airlines in May also reached a labor deal.

Reuters contributed to this report.