Southwest Airlines pilots may get a 50% pay raise

December 20, 2023 11:26 AM PST | By Invezz

Southwest Airlines pilots may get a 50% pay raise — Image source: Invezz

The agreement is worth about $12 billion

The said agreement with Southwest Airlines Pilots Association (SWAPA) promises a 50% pay raise to pilots over five years.

Casey Murray – the President of Southwest Airlines values the deal at about $12 billion. In comparison, the four-year agreement that peer United Airlines recently signed with the pilots is worth about $10 billion.

The news arrives about a couple months after Southwest Airlines reported weaker-than-expected revenue for its fiscal third quarter and said it will pump the brakes on capacity growth in 2024 citing moderating demand.

Shares of Southwest Airlines Co have gained roughly 30% since late October.

Watch here: https://www.youtube.com/embed/ZJTFgVAObs8?feature=oembed

Southwest pilots need to approve the deal

Southwest Airlines employs close to 11,000 pilots currently. They are yet to approve the five-year preliminary agreement announced on Wednesday.

If the air carrier’s pilots do nod on the new contract, they’ll get close to a 30% pay raise upon signing it. The air carrier says it’s “pleased” to have reached this tentative deal with Southwest Airlines Pilots Association.

The AIP is a key milestone in the process, and we look forward to the next steps.

Note that other major U.S. airlines have already inked similar deals with their pilots. Wall Street currently has a consensus “hold” rating on shares of Southwest Airlines Co.

The post Southwest Airlines pilots may get a 50% pay raise appeared first on Invezz

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