US Airlines Compete to Recruit Pilots... Offering 40% Wage Increase

"Pilot Shortage Expected to Continue Until 2027"

Delta Air Lines aircraft [EPA=Yonhap News Agency file photo]

U.S. airlines are offering unprecedented wage increases to address the pilot shortage and are actively competing to recruit pilots.

According to major foreign media on the 7th (local time), Delta Air Lines reached an agreement with its pilots on the 1st, offering exceptional wages and benefits. Following this, American Airlines announced on the same day that it would raise wages to match Delta Air Lines' level.

Delta Air Lines negotiated with the Air Line Pilots Association (ALPA), representing 15,000 in-house pilots, agreeing to increase salaries by 34% over the next four years. They also plan to reduce health insurance premiums and improve holiday pay, vacation, and work rules. American Airlines plans to raise average wages by 21% this year and increase total pay by up to 40% after four years. Both companies are expected to require more than $700 million (approximately 924 billion KRW) each for these wage increases and other expenses.

Some executives view this pilot wage increase competition as a hurdle to improving company financial health, which is burdened by fixed costs and debt. Delta Air Lines expects that operating costs will rise due to the agreement with pilots, negatively impacting its first-quarter earnings this year.

The competition for pilot wage increases has arisen as airlines ramp up pilot recruitment to meet the recent surge in travel demand. In addition to Delta and American, U.S. airlines such as United and Southwest are expected to hire 8,000 new pilots this year. Wall Street anticipates that this mismatch between demand and supply will continue until 2027.