FedEx reaches tentative wage deal with pilots after years of talks

April 8 (Reuters) - FedEx FDX.N and a union representing more than 5,000 of its pilots reached a tentative deal on Wednesday, paving the way for wages increases after years of negotiations.

FedEx's management and the Air Line Pilots Association (ALPA) have been in talks since May 2021.

Under the tentative agreement, pilots' hourly wages would rise by about 40% in 2026, followed by an annual increases of 3% from 2028 through 2030, the union said.

Captains would also receive up to $150,000 in retroactive pay missed during negotiations, while first officers will get up to $102,500.

"The tentative agreement will next be presented to the FedEx Master Executive Council for their review," the union said, adding that the deal was reached during talks overseen by the National Mediation Board.

FexEx, which operates the world's largest cargo air fleet by plane count with 390 cargo jets and 313 turboprop planes, confirmed the tentative agreement with its pilots' union.

In 2023, the delivery company's pilots had narrowly rejected a tentative agreement that offered a 30% pay increase and improved pension benefits over younger pilots' concerns over outsourcing.