Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

United Air expects new pilot offer to add over $8 billion in costs

Published 06/13/2023, 07:27 AM
Updated 06/13/2023, 01:57 PM
© Reuters. FILE PHOTO: A United Airlines Boeing 787 taxis as a United Airlines Boeing 767 lands at San Francisco International Airport, San Francisco, California, February 7, 2015.   REUTERS/Louis Nastro
DAL
-
KEX
-

(Reuters) - United Airlines Holdings (NASDAQ:UAL) Inc is offering its pilots a contract in excess of $8 billion in cumulative increases in pay and benefits over four years, in possibly the richest labor deal by a major American carrier, if ratified by the union.

The move comes at a time when pilots in North America are pushing for better pay and working conditions in their talks with company managements over new employment contracts.

Delta Air Lines (NYSE:DAL)' landmark pilots contract in March, which offers $7 billion in higher pay and benefits, has put pressure on rival carriers to hand out similar deals ahead of a busy summer travel season.

Bloomberg News reported on United's new offer earlier in the day, according to which CEO Scott Kirby (NYSE:KEX) also said the company has been negotiating weekly to reach a formal agreement with the union.

The Chicago-based carrier confirmed the details of the Bloomberg report.

Earlier this month, the company's pilots union voted to authorize a strike vote - a bargaining tactic unions have been using in contract negotiations.

However, Kirby did not reveal details included in the proposal, other than to say United would top the recent deals agreed to by its two biggest rivals.

© Reuters. FILE PHOTO: A United Airlines Boeing 787 taxis as a United Airlines Boeing 767 lands at San Francisco International Airport, San Francisco, California, February 7, 2015.   REUTERS/Louis Nastro

"We have disagreed with the company on the costing of items and they, in our opinion, have inflated many. We still have significant quality of work life (balance), sick leave, long-term disability issues open," a spokesperson for the union, affiliated with the Air Line Pilots Association, told Reuters.

Meanwhile, shares of United Airlines rose 3.5% in afternoon trade, benefiting from broader market gains.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.