Southwest Airlines and its pilots' union have finally reached a new preliminary labor agreement after months of intense negotiations. The deal, which is set to give pilots substantial raises, makes Southwest the last major U.S. airline to strike a deal with its aviators.

While the details of the pay increases have not yet been disclosed, the pilots' union estimates that the five-year agreement is worth an impressive $12 billion. In comparison, United Airlines' recent four-year pilot contract amounts to approximately $10 billion, as reported by the aviators' union.

This eagerly anticipated contract marks a significant milestone in Southwest's ongoing labor negotiations, bringing the company in line with its competitors. The agreement is still subject to approval by Southwest pilots, but it represents a crucial step towards resolving the dispute.

Southwest expressed its satisfaction with the progress made, stating, "We are pleased to reach an Agreement in Principle with the Southwest Airlines Pilots Association for Southwest's more than 10,000 Pilots. The AIP is a key milestone in the process, and we look forward to the next steps."

Throughout the aviation industry, pilot contracts worth billions of dollars have been finalized this year. The COVID-19 pandemic initially disrupted negotiations and led to a halt in pay increases across the highly unionized sector. However, as travel demand rebounded and inflation soared, pilots and other aviation workers have advocated for higher wages and improved working conditions, including more predictable schedules.

Southwest has faced criticisms from its pilots and flight attendants regarding erratic schedules, particularly during disruptions. Last year, the airline experienced a holiday meltdown that stranded approximately 2 million customers, partly due to outdated software that left crews unprepared for rescheduled flights. In response to the crisis, the U.S. Transportation Department levied a $140 million fine against Southwest for its handling of the situation, as announced just recently.

While the pilots' union has reached an agreement, Southwest's flight attendants recently rejected a preliminary deal in a vote. However, the union has stated that there will be a re-vote, citing concerns over technical glitches during the online voting process.

Labor unions across various industries have demonstrated their influence this year, leading to major labor agreements. The highly publicized agreements include deals between Hollywood studios and actors, studios and writers, and automakers and the United Auto Workers union, following prolonged strikes.

With Southwest Airlines and its pilots' union finalizing their labor agreement, the company can now focus on moving forward with a unified workforce and meeting the demands of the post-pandemic travel industry.