FedEx Corporation (FDX.US) reached a preliminary agreement with the union, and the hourly wage for pilots will increase by approximately 40%.

FedEx Corporation (FDX.US) reached a preliminary agreement with the union representing its more than 5,000 pilots on Wednesday, paving the way for wage increases. It is reported that the management of FedEx Corporation has been negotiating with the Air Line Pilots Association (ALPA) of American Airlines Group Inc. since May 2021. According to the union, under the preliminary agreement, pilots' hourly wages will increase by approximately 40% by 2026, followed by annual increases of 3% from 2028 to 2030. Captains will also receive back pay of up to $150,000 owed during the negotiations, while first officers will receive back pay of up to $102,500. The union stated that the "preliminary agreement will next be submitted for review by the FedEx Corporation's Executive Council," and added that the agreement was reached through negotiations under the supervision of the National Mediation Board. FedEx Corporation confirmed the preliminary agreement reached with the pilots' union. With the largest cargo plane fleet in the world by number of aircraft, FedEx Corporation operates 390 cargo jet planes and 313 turboprop planes. In 2023, the pilots of this delivery company narrowly rejected a preliminary agreement that proposed a 30% pay raise and improvements to pension benefits, with younger pilots expressing concerns about outsourcing issues.