United Airlines Holdings, Inc. announced a tentative labor agreement with the Association of Flight Attendants‑CWA that includes immediate wage increases, a top hourly rate of $100 by the end of the agreement period, boarding pay, compensation for long gaps between flights (sit pay), and a $740 million signing bonus for the approximately 30,000 flight attendants covered by the deal. The agreement is subject to ratification by the union’s members and will become amendable after five years if ratified.
The deal raises United’s labor costs but provides the airline with greater cost visibility and stronger employee relations. Management noted that the agreement’s terms were factored into United’s 2026 earnings‑per‑share guidance of $12.00 to $14.00, following a $561 million charge for initial ratification costs in 2025. The agreement is the first major carrier flight‑attendant deal since the pandemic ended, and it is expected to help maintain operational stability amid ongoing labor negotiations.
"Our flight attendants are the best in the industry and have earned an industry‑leading contract," United CEO Scott Kirby said. "I often say they are the face of our operation and the role they play every day – to keep people safe and deliver great service – helps make United the biggest and best airline in aviation history." United vice president of labor relations Nathan Lopp added that the proposal would deliver the highest flight‑attendant pay among U.S. carriers. The agreement also includes potential concessions such as a Preferential Bidding System for scheduling and the removal of a prohibition on United owning a regional airline, which could allow the use of cheaper labor at subsidiaries.
Analysts noted that the agreement’s inclusion of a $740 million signing bonus and the commitment to a $100 hourly rate provide United with a clear cost structure for the next five years. The deal’s impact on labor costs was factored into United’s guidance, and the agreement is viewed as a positive step toward reducing future labor disruptions.
The tentative agreement positions United to strengthen its competitive stance in the labor market, improve crew retention, and enhance operational reliability. By securing a long‑term, industry‑leading contract, United aims to balance higher labor expenses with the benefits of a more stable and motivated workforce, supporting its broader strategy of maintaining service quality while managing costs.
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