"Salary Increase of 40%"... This Job Has Become Highly Valuable Due to Soaring Demand

Top 3 US Airlines Significantly Raise Pilot Salaries
High Demand for Flights Leads to 'Highly Valued' Treatment

As the first summer vacation season since the COVID-19 pandemic arrives, air travel demand has surged explosively, making pilots in the United States extremely valuable.

On the 17th (local time), according to The New York Times (NYT) and others, the three major U.S. airlines?Delta Air Lines, American Airlines, and United Airlines?have reached labor-management agreements on pilot salary increases and improved working conditions.

United Airlines Boeing 737 Max passenger aircraft. [Image source=Yonhap News]

In particular, United Airlines reached a "generous agreement" last week with the pilots' union to raise wages by 40% over four years. The agreement also includes improvements in job security, vacation, retirement, and working conditions. The cost of implementing this is estimated to reach $10 billion (approximately 12.62 trillion KRW).

Regarding this agreement, Scott Kirby, CEO of United Airlines, stated, "We promised world-class pilots the industry's best conditions and are pleased to have reached an agreement."

Earlier, pilot wage negotiations were reported in March at Delta Air Lines and in May at American Airlines. Delta Air Lines first agreed to a 34% wage increase over four years and schedule improvements such as restrictions on long-haul flights, and other airlines are reaching similar agreements under comparable conditions.

Regarding this, the Financial Times (FT) explained, "In the airline industry, where unionization rates are high, pilot negotiations usually proceed through pattern bargaining (a method where the union reaches a model agreement with a specific company and then applies it to other workplaces). Because of this, the wages and working conditions set by one airline become the standard for others."

On May 12 (local time), United Airlines pilots staged a collective action with guide signs at Chicago O'Hare International Airport.
[Image source=AP Yonhap News]

In the United States, pilots are classified as high-income professionals earning over $100,000 annually. Veteran pilots flying long-haul large aircraft are known to earn salaries reaching hundreds of thousands of dollars.

However, during the pandemic, pilot numbers were drastically reduced through early retirements, and post-pandemic replenishment of personnel has not been smooth, leading some to complain about pilot shortages. With the recent surge in air travel demand during the summer vacation season, pilots have become even more "precious."

According to consulting firm Oliver Wyman, the global shortage of airline pilots this year is estimated at 17,000, and this number is expected to increase to 24,000 by 2026.

Especially among U.S. pilots, about half are over 50 years old, and since half are expected to retire within 15 years, the pilot shortage problem is projected to worsen. In Congress, alternatives such as extending pilot retirement age, simulation training, and reducing training hours are reportedly being discussed.