Southwest Pilots Reach Agreement With The Airline Over Pay Issues: Here's Details

Southwest Airlines Company (NYSE: LUV) pilots association reached an Agreement in Principle (AIP) with the company.

Located in Dallas, Texas, the Southwest Airlines Pilots Association (SWAPA) is a non-profit employee organization representing the more than 11,000 pilots of Southwest.

The term is for a new five-year contract worth $12 billion, reported Reuters.

"This AIP comes after three-and-a-half long years of negotiating. We are finally at a place where we think the value of our pilots and their productivity is being realized," stated SWAPA President Captain Casey Murray. 

This will follow the evaluation of the agreement by SWAPA's 25-member board of directors, which, if approved, will make AIP a Tentative Agreement (TA) that the 11,000-plus pilot membership must vote on. 

According to the report, Southwest Airlines and its pilots had been negotiating a new contract for over three years and have been in federal mediation since September 2022, with the last contract ending in 2020.

Also Read: Southwest Airlines Hit With Record $140M DOT Fine, Consumer Protection Violations Highlighted

Price Action: LUV shares are trading higher by 0.73% at $29.56 on the last check Wednesday.

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