![]() Southwest Airlines canceled more than 2,000 flights over the weekend, citing bad weather and operational issues. "They ask for the stars and they hope to get the moon," Syth said of unions.Watch Video: Southwest Airlines cancels more than a thousand flights The claim: A sickout organized by pilots over vaccine mandate is behind Southwest flight cancellations ![]() Meanwhile, passenger airline executives have been far more upbeat about continued travel demand, but increasing costs of living could further embolden unions to ask for a better deal. FedEx CEO Raj Subramaniam in September rattled investors when he predicted a "worldwide recession" is coming. If unions reject deals in an effort to push for better terms, the industry could face an economic downturn. The longer negotiations take, he said, the bigger the date-of-signing increases could be. 27 note that "we've long assumed that industry-wide wage increases would be kept comfortably below the double-digit level. JPMorgan airline analyst Jamie Baker wrote in an Oct. Under the agreement, some pilots are getting more than 20% raises at contract signing.Īnd pilots have been taking note of massive pay bumps at regional airlines, including some owned by American, smaller carriers where staffing shortages are most acute. So there's win-win deals that will be had out there." Double-digit pay bumpsĪlaska Airlines pilots ratified a new contract last month, a rare success story this year. "And it's the best interests of our pilots and flight attendants and everybody in this company. "We negotiate with a mind to making sure that we take care of our team and that we take care of the company as well," American Airlines CEO Robert Isom said on a quarterly earnings call late last month. Off-duty pilots and flight attendants have picketed at airports and company headquarters to demand contract improvements, and more demonstrations are said to be in the works.Īirlines are now trying to navigate sealing up deals without spooking investors about company finances. The Atlanta-based carrier has said that despite the vote, the two sides have "made significant progress in our negotiations and have only a few contract sections left to resolve."ĭelta, Southwest Airlines and FedEx pilot unions have turned to federal mediation to resolve impasses.įlight attendants, too, are negotiating for higher pay and better work schedules at American, Southwest and United. Delta noted the vote won't affect its operation. United said it is already working with its pilots' union, the Air Line Pilots Association "on a new, industry-leading agreement that we expect to include improved pay rates and other enhancements."ĭelta Air Lines pilots also this week voted to authorize a potential strike if the union can't reach a deal with the airline, a lengthy process. Major airline unions have said frequent schedule changes and long trips have hurt members' quality of life.Įarlier this week, United Airlines pilots overwhelmingly rejected a deal for nearly 15% increases over about 18 months. American had offered 17% raises earlier this year.īeyond pay, APA's Tajer said the union wants better work rules, such as the ability to drop and add trips more easily. The Fort Worth, Texas-based carrier offered pilot raises of some 19% in the latest two-year contract proposal. The Allied Pilots Association said on Wednesday that its board of directors rejected a tentative agreement from American Airlines. But pilots are in short supply and aviators at smaller carriers have received huge pay increases in response, so securing deals is in the major airlines' interest as they fight over aviators. Employee compensation rivals fuel as carriers' biggest expense. New labor deals are sure to drive up costs at airlines, analysts say. "What this is really about is the work-life balance and restoring reliability of airlines - and doing that not on the backs of pilots." The money is coming, there's no question about it," said Dennis Tajer, an American Airlines Boeing 737 captain and spokesman for the Allied Pilots Association, which represents some 15,000 pilots at the carrier. Meanwhile pilot unions are demanding higher pay and better schedules, on the heels of a roller coaster two years.īoth sides are staring down the risks of persistently high inflation. The pandemic also derailed contract talks with pilots, flight attendants and other groups, setting the stage for widespread negotiations throughout the industry this year.Īirlines are facing the dual challenge of combatting a shortage of pilots while keeping a lid on costs. The tensions come as the industry rebounds from the Covid-19 pandemic, which devastated travel demand and drove airlines to record losses of around $35 billion in 2020. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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