United boosts pilots by $14.5%

United Airlines pilots tentatively agreed to a new contract that gives them 14.5% raises, increased overtime pay and other benefits, setting the standard as other major carriers negotiate deals with their aviators at a time of rebounding travel demand.

The higher pay will come in three increases over an 18-month span, the Air Line Pilots Association’s said Friday.

The deal also includes eight weeks of paid maternity leave. The agreement will be sent to the union’s 14,000 members for ratification after its leaders voted to approve the terms.

The announcement comes as United and other carriers work to rebound from the steep downturn two years ago during the pandemic.

Among the challenges is a shortage of workers, partly because of a backlog as companies retrain pilots who were on furlough.

Consumer fears subside slightly

The University of Michigan’s final June reading of longer-term U.S. consumer inflation expectations settled back from an initially reported 14-year high, potentially reducing the urgency for steeper Federal Reserve interest-rate hikes.

Respondents said they expect inflation to rise 3.1% over the next five to 10 years, down from a preliminary reading of 3.3%, according to Friday’s report.

They see prices advancing 5.3% over the next year, matching the initial figure.

“Overall, the late-June reversion in long run inflation expectations was generated by growth in the share of consumers expecting extremely low inflation in the years ahead,” Joanne Hsu, director of the survey, said in a statement.

“About half of these consumers expressed bleak views about the risks of recession or unemployment during the interviews.”

The inflation-expectations results earlier this month played a key role in the Fed’s decision last week to raise interest rates by the most since 1994.

From wire reports