Flight attendants for United Airlines (UAL) have approved a new five-year labor contract that provides them with a 31% increase to their base pay.
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Chicago-based United is the final major U.S. carrier to settle contract negotiations with its unionized flight crews. It is the first major post-pandemic labor deal reached by the carrier and its flight attendants. The new agreement covers approximately 30,000 flight attendants.
The new contract received 82% approval with close to 90% of crew members voting on the new labor pact. The 31% pay increase represents the workers’ first pay increase in nearly six years, or since the Covid-19 pandemic struck in 2020.
Blue Skies Ahead for United Airlines
Approval of the new labor agreement removes the prospect of a costly strike by flight attendants at United Airlines during the busy summer travel season. Under terms of the new deal, United’s flight attendants will receive boarding pay for time when the aircraft door is open and passengers are getting onto aircraft.
Airlines had traditionally started flight attendants’ pay clock only after the boarding door closed. Additionally, the new contract includes a 7% to 8% increase in total compensation and $741 million in back pay for the flight attendants.
Is UAL Stock a Buy?
The stock of United Airlines has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 16 Buy recommendations issued in the last three months. The average UAL price target of $127.77 implies 34% upside from current levels.
