Union Says Southwest Airlines Pilots To Get 3.25% Pay Raise In 2028; After Contract Ends, Southwest Airlines Pilots Will Receive A 2.5% Bonus Each Year Until A New Agreement; Board Has Voted To Send The New Contract Deal To Members For A Ratification Vote
Portfolio Pulse from Benzinga Newsdesk
Southwest Airlines pilots, represented by their union, are set to receive a 3.25% pay raise in 2028 following the end of their current contract. Additionally, they will be awarded a 2.5% annual bonus until a new agreement is reached. The union's board has approved the new contract proposal and is sending it to the members for a ratification vote, as reported by Reuters.
December 20, 2023 | 6:34 pm
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NEUTRAL IMPACT
Southwest Airlines pilots are poised for a pay raise and annual bonuses as per the new contract deal, which is pending ratification by union members.
The news of a potential pay raise and bonus for pilots may have a neutral short-term impact on Southwest Airlines' stock (LUV) as it reflects a cost increase but also suggests a stable labor relationship. The importance is moderate as labor costs are a significant factor in an airline's financials, but the impact is not immediate as the raise is set for 2028. The confidence level is high due to the clear terms of the agreement and the process of ratification.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80