Southwest Airlines Co () is trending up at writing after announcing a new preliminary deal with the pilots’ union.The agreement is worth about $12 billionThe 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 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.Southwest pilots need to approve the dealSouthwest 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.More By This Author:Micron Q1 Earnings: ‘Big Driver In 2024 Is Going To Be AI’ Apple Will Be Worth $4.0 Trillion By The End Of 2024: Wedbush Analyst Marathon, Riot Stocks Surge As Bitcoin Climbs To $44k
