New Pilot Contracts to Drive Up Costs at US Airlines

New Pilot Contracts to Drive Up Costs at US Airlines
Ice is removed from a United Airlines jet after a cold weather front moved into General Mitchell International Airport in Milwaukee on Dec. 22, 2022. Mark Hoffman/USA Today Network via Reuters
Reuters
Updated:

U.S. airline profits are set to come under pressure in 2023 as they look to shell out more cash to retain pilots amid worries about the impact of a potential recession on travel demand.

Major carriers such as United Airlines Holdings Inc., American Airlines Group Inc., Delta Air Lines Inc., and Southwest Airlines Co. have rushed to add staff after a faster-than-expected rebound in the U.S. travel market.