Union Says Southwest Airlines Pilot Contract Deal Provides For About 50% Pay Raise Over A 5-Year Period; Pilots To Get 29.15% Pay Raise On The Date Of The New Contract's Ratification; Pilots To Get 4% Pay Raise Each In 2025, 2026 And 2027
Portfolio Pulse from Benzinga Newsdesk
Southwest Airlines pilots are set to receive a significant pay increase under a new contract deal, as reported by Reuters citing the union. The deal includes an immediate 29.15% raise upon ratification and subsequent 4% annual raises in 2025, 2026, and 2027, totaling about a 50% increase over five years.
December 20, 2023 | 6:32 pm
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Southwest Airlines pilots secured a new contract with a 50% pay raise over five years, including an immediate 29.15% raise upon ratification, followed by 4% annual raises for the next three years.
The new pilot contract for Southwest Airlines represents a significant increase in labor costs, which could impact the company's short-term earnings. However, the agreement may also improve labor relations and operational stability, which could have a positive effect on the company's performance and stock price. The net impact on the stock price is uncertain, hence a neutral score is assigned.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100