By Allison Lampert
MONTREAL (Reuters) – Air Canada pilots are pressing for higher pay in the run-up to fresh contract talks, following recent gains secured by pilots at U.S. carrier Delta Air Lines, union representatives told Reuters.
A contract between Delta and its pilots that came into effect on Thursday delivers a 34% pay increase over four years, driving pressure on other U.S. carriers to reach similar deals.
It is also galvanizing pilots at Canada’s largest carrier. Delta’s latest hourly pay rates are up to 45% higher than current Air Canada hourly pay rates, the Air Canada Pilots Association (ACPA) said in an email.
Air Canada pilots have received a 2% wage increase per year, since 2014, said ACPA, which represents about 4,500 pilots. They could potentially begin salary talks as early as this year, or in 2024, the union said.
“Pilots in the U.S. have recently secured significant wage increases and other contractual improvements, creating an embarrassing gap with Canada,” Charlene Hudy, a top ACPA union leader, said in a statement.
The talks come as North American carriers are collectively recruiting thousands of pilots to meet growing travel demand following a pandemic-induced slump.
ACPA is in talks to possibly join the Air Line Pilots Association (ALPA), the world’s largest pilots’ union, representing more than 60,000 pilots in the United States and Canada.
“We believe Canada’s pilots need to speak with one voice about our working conditions, which is one of the reasons we are currently in talks with ALPA,” Hudy added.
ALPA and Air Canada were not immediately available for comment.
Some airline executives are concerned that hefty pilot pay raises will inflate fixed costs and make it tougher to repair debt-laden balance sheets. Delta has forecast a hit on its earnings in the first quarter as the pilot deal is estimated to drive up operating costs.
Air Canada, which expects to return to 2019 levels of capacity next year, is also facing cost pressures.
Salary is also a priority for pilots at Canada’s second- largest carrier, WestJet, who are currently in bargaining.
U.S. carriers American Airlines Group and United Airlines are also negotiating with their pilots.
(Reporting by Allison Lampert in Montreal. Additional reporting by Rajesh Kumar Singh in Chicago; Editing by Matthew Lewis)
