Southwest Airlines (NYSE:LUV) has reached a promising milestone on the labor front by securing a tentative agreement with its flight attendants’ union, Transport Workers Union Local 556 (TWU556). The union represents approximately 20,000 attendants employed by the Dallas-based carrier.
The provisional agreement is now subject to a vote by the flight attendants. Its implementation hinges on a favorable outcome from the voting process. Once enacted, the agreement will grant flight attendants the opportunity to achieve substantial gains in compensation.
It’s worth noting that in December 2023, flight attendants at LUV had declined a previous deal. The company is undoubtedly hoping for a different outcome this time with the tentative agreement.
Against the backdrop of a pilot shortage in the U.S. airline industry, spurred by a robust resurgence in air-travel demand from pandemic lows, there has been a series of recent labor agreements in the airline sector.
In August 2023, American Airlines (AAL) successfully ratified a four-year agreement with its pilots. This approval has enabled AAL’s pilots to receive an immediate average pay raise exceeding 21%. Additionally, the agreement includes provisions aimed at enhancing pilots’ quality of life, which account for nearly 20% of the contract’s increased value.
In March 2022, Delta Air Lines (NYSE:DAL) pilots approved a four-year agreement that provides for a 34% pay increase over the next four years for its 15,000 pilots.
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