Delta Air Lines has offered a 34% cumulative pay increase to its pilots over three years in a new contract, demonstrating the bargaining power aviators are enjoying in a short-staffed industry with booming travel demand.
If the deal is approved by Delta\n \n pilots, it is widely expected to act as a benchmark for contract negotiations at rivals United Airlines\n \n and American Airlines\n \n . Delta pilots will get a raise of at least 18% on the date the contract is signed, another 5% after one year, 4% after two years and 4% after three years, according to a draft contract seen by Reuters.
The demand for airline seats is still high compared to supply, meaning that customers are likely to continue to pay higher ticket prices. But if the United States falls into recession and that hits demand, it will be more difficult for airlines to cover those increased labor costs. In the draft agreement, Delta promises that pay rates for its pilots will exceed those at United and American by at least 1%.
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