United Airlines Soars High with $8B Promise: Will Pilots Buckle Up for a Smooth Landing?

United Airlines Holdings Inc UAL is reportedly offering its pilots a contract with an incremental value above $8 billion over four years.

UAL is negotiating to reach a formal agreement with the union, reported Bloomberg, citing Chief Executive Officer Scott Kirby.

"We have a deal on our table that would be industry leading," Kirby added.

Early in June, it was reportedly revealed in a letter from the head of the United Airlines Pilots Union that the union had unanimously supported a vote authorizing a strike.

The report states that pressure on United has increased due to the labor negotiations, even though the airline is benefiting from booming demand for leisure travel and no evidence of a slowdown in business-related vacations.

Also Read: Supply Chain Problems May Disrupt Air Travel In Summer 2023: Report

Kirby reaffirmed that a "business recession" is preventing corporate travel from reaching 2019 levels by up to 25%, but he predicted a full recovery.

"It would require something pretty significant — beyond the scope of what anyone has in any other sort of base case scenario," Kirby added.

Kirby added that United would oppose any effort to relax the rule requiring most pilots to have 1,500 hours of flight experience to obtain a license to fly large aircraft.

Price Action: UAL shares are trading higher by 0.74% at $51.69 premarket on Tuesday.

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