Delta agrees to 34% pay increase for pilots with other major airlines to follow suit

• Delta Air Lines approved $7 billion in wage increases on Wednesday
• American Airlines warned that the increases financially affect the entire industry
• It is still unclear how much the 34% wage increase will affect ticket prices

Pilots at Delta Air Lines easily approved a new contract that will increase their wages by more than 30 percent over four years and is likely to lead to similar agreements covering union pilots at other major U.S. airlines.

The Air Line Pilots Association said 78 percent of Delta’s 15,000 pilots voted to support the contract that will lead to a cumulative $7 billion in pay increases.

Delta pilots currently earn between $66,853.80 per year to $257,657.40 per year, according to aviationinterviews.com. The wage increase could increase wages to between $89,584.10 and $345,260.92.

The ratification comes after a strike by pilots last summer and about six months after Delta pilots voted to authorize a strike.

“This industry-leading contract is a direct result of the unity and determination of Delta pilots,” said Darren Hartmann, a pilot and union official.

A spokesperson for Delta Air lines was not immediately available to answer how the increases will affect customers and ticket prices. During the negotiations in December, they refused to elaborate on the potential of increased flight prices.

Smaller airlines are facing pilot shortages as major airlines recruit from their ranks.

While the biggest operators say they have enough pilots, the shortage has given unions leverage to negotiate rich pay increases.

John Laughter, the Atlanta-based airline’s chief operating officer, said the contract “recognizes our pilots’ contributions to Delta.” He said the airline set out to reach an agreement that would keep Delta as a top destination for aviation workers.

The contract takes effect Thursday and runs through 2026 when it can be changed — by federal law, union contracts in the airline industry do not expire.

American Airlines claimed that its competitor’s increase agreement affects the entire airline industry financially, according to Reuters.

In June, off-duty Delta Air Lines pilots began demanding an increase in pay and better schedules amid thousands of flight cancellations. Several picked up at LAX, JFK and Atlanta airport.

At the time, The Air Line Pilots Association claimed nearly 14,000 members were working longer hours even as airlines canceled thousands of trips.

Pilots have complained that thinly staffed airlines are asking them to work too many flights, with several pilots reporting fatigue.

The last time Delta pilots negotiated a new contract was in 2016, according to Jason Ambrosi, a Delta pilot and union official

Although it is unclear whether the increases will increase airfares, renewed travel demand last year boosted the average ticket price around the holidays.

Thanksgiving flights were set to cost $468 on average this year, 50 percent more than last year and 30 percent more than in 2019.

Christmas flights turned out to be more expensive at an average of $574, up 20 percent from last year and 50 percent more than before the pandemic.

The price increase came as airlines reported strong financial quarters and earnings after receiving $54 billion in taxpayer money to stay afloat during the pandemic.

Delta airlines revealed that it made a whopping $695 million in profits for the third quarter of last year despite having one of the toughest summer travel seasons in history as Americans traveled at close to pre-pandemic levels.