Southwest Airlines (LUV.N) and its pilots’ union are reportedly on the verge of finalizing a new labor agreement, just in time for the holiday season, according to an insider familiar with the ongoing negotiations.
This news sent the airline’s shares surging by 3.4% during afternoon trading.
While specific terms of the agreement have yet to be disclosed, it is expected that the negotiations may take a few more weeks to address some remaining outstanding issues.
Southwest, in an emailed statement to Reuters, expressed optimism about the progress, stating, “Both negotiating teams are working hard to close out the few remaining items.”
The airline emphasized its commitment to reaching a mutually beneficial deal that not only rewards its pilots but also positions them competitively within the aviation industry.
This development comes as North American pilots and flight attendants have been actively advocating for improved pay and better working conditions during their ongoing contract discussions with airline management.
In October, Southwest Airlines had already made significant strides by reaching a tentative agreement with the Transport Workers Union Local 556, which represents nearly 19,000 flight attendants.
Earlier in the year, several major carriers, including American Airlines, Delta, and United Airlines, had successfully come to terms with their respective pilot unions, solidifying labor agreements that addressed key concerns.
The potential breakthrough in labor negotiations with Southwest’s pilots’ union is seen as a positive step forward for both the airline and its workforce.
It signifies the willingness of both parties to find common ground and ensure the airline’s pilots are fairly compensated and provided with competitive working conditions.
CNBC initially reported on the nearing agreement between Southwest Airlines and the pilots’ union, adding to the positive sentiment surrounding the airline’s stock and highlighting the importance of labor harmony as the industry navigates a complex and challenging environment.