FedEx Pilots and Union Reach Tentative Agreement on 40% Pay Increase

After more than four years of negotiations, FedEx and the Air Line Pilots Association (ALPA) have finally reached a tentative agreement, bringing relief to over 5,000 pilots who have been waiting for a new contract since talks began in May 2021. The deal, brokered under the oversight of the National Mediation Board, marks a significant milestone for one of the world's largest cargo airlines.

At the heart of the agreement is a substantial 40% hourly wage increase set to take effect in 2026, followed by steady annual raises of 3% from 2028 through 2030. The deal also addresses back pay accumulated during the lengthy negotiation period, with captains eligible to receive up to $150,000 in retroactive compensation and first officers set to receive as much as $102,500. These figures reflect the union's push to ensure pilots are fairly compensated for the time lost during prolonged contract discussions.

FedEx, which operates the world's largest cargo air fleet by aircraft count — comprising 390 cargo jets and 313 turboprop planes — confirmed the tentative agreement, signaling a positive step toward labor stability within the company. The agreement will now be reviewed by the FedEx Master Executive Council before any final ratification takes place.

This development comes roughly two years after a previous tentative deal was narrowly rejected by pilots in 2023. That earlier proposal, which offered a 30% pay increase along with enhanced pension benefits, was turned down largely due to concerns among younger pilots regarding outsourcing practices.

The new agreement represents a stronger offer and reflects both sides' commitment to reaching a sustainable, long-term resolution. For FedEx, securing pilot satisfaction is critical to maintaining the operational efficiency that keeps its global logistics network running smoothly.