United Airlines pilots approve costliest US contract worth more than $10 billion

United Airlines pilots have approved a new four-year contract, making it the costliest ever at a US carrier with a total value of $10.2 billion. The contract, which received approval from 82% of voting pilots, offers a cumulative increase in total compensation of up to 40.2% over its duration.

This marks the first post-pandemic contract for United pilots and follows a trend set by other major US carriers like Delta and American Airlines, who used the industry-wide shortage of pilots to secure significant pay raises and work-life balance improvements.

The new United contract includes $1.7 billion in policies aimed at enhancing pilots’ quality of life, such as increased profit sharing and improved pay during training. More than 200 improvements in the contract, including immediate pay hikes, were negotiated. Pilots will see an immediate pay boost of 13.8% to 18.7% upon signing the agreement, followed by annual increases of up to 5%. Total compensation, including retirement and benefits, will rise between 34.5% and 40.2%, depending on the aircraft flown.

This contract represents a significant increase in labour costs for United Airlines, which, alongside fuel costs, has become the largest expense for airlines. These agreements are part of a broader trend that has seen salaries, wages, and benefits account for 44% of total airline costs.