Alaska Airlines flight attendants vote YES on new contract

Rhea-AI Summary

Alaska Airlines (NYSE: ALK) announced that over 6,900 flight attendants, represented by the Association of Flight Attendants (AFA), have ratified a new three-year contract with a 95% approval rate and 90% voter participation. The agreement, effective March 2, 2025, includes significant improvements such as increased pay with boarding pay, market rate adjustments, and a ratification payment.

The contract maintains the industry's shortest duty day at 10 hours and 30 minutes, alongside Southwest, and features enhanced work rules, scheduling flexibility, and benefits including caps on insurance premiums. This marks the eighth ratified labor contract between Alaska Air Group and its represented workgroups in the last three years, supporting the company's vision of creating remarkable travel experiences.

Positive

• 95% approval rate with 90% voter participation shows strong workforce alignment
• Increased compensation package including boarding pay and market rate adjustments
• Maintains industry-leading 10.5-hour duty day, matching Southwest Airlines
• Eighth successful labor agreement in three years demonstrates positive labor relations

Negative

• Additional compensation and benefits will increase operational costs

Insights

Labor Relations Specialist

Alaska Airlines' flight attendant contract ratification marks a strategic labor relations achievement with significant operational implications. The 95% approval rate from 90% of voting flight attendants demonstrates exceptional workforce alignment and suggests management effectively balanced employee priorities with business constraints.

The agreement includes multiple compensation enhancements: increased base pay, new boarding pay implementation, a ratification payment, and a market rate adjustment. While specific financial figures aren't disclosed, these components will incrementally increase Alaska's labor costs beginning March 2nd.

The maintenance of a 10.5-hour duty day—matching only Southwest as the industry's shortest—represents a quality-of-life victory for flight attendants while creating distinct operational parameters Alaska must manage. This work rule has scheduling implications that affect crew utilization efficiency compared to competitors with longer duty days.

This represents Alaska's eighth labor agreement in three years, revealing a systematic approach to workforce relations during a period of significant corporate transformation. The agreement's timing is particularly strategic ahead of complex integration challenges with Hawaiian Airlines, establishing a structural framework for upcoming joint negotiations as referenced by AFA leadership.

For investors, this contract delivers labor stability and removes the threat of service disruptions while demonstrating management's ability to secure workforce buy-in during the Hawaiian merger implementation phase. The contract's three-year term provides cost predictability through early 2028.

Airline Industry Analyst

This contract ratification carries operational significance beyond typical labor agreements. Alaska's ability to secure a 95% approval rate indicates the carrier has positioned itself competitively in the industry's talent marketplace while maintaining cost discipline.

The introduction of boarding pay aligns Alaska with an emerging industry standard that recognizes previously uncompensated work time. This follows similar moves by major carriers responding to flight attendant demands for compensation that reflects actual duty requirements versus solely in-flight hours.

The preservation of the 10.5-hour duty day limitation (shared only with Southwest) maintains a structural difference in how Alaska must approach crew scheduling and network planning compared to competitors operating with 12-14 hour duty days. This creates both operational constraints and potential recruitment advantages.

Notably, the contract addresses insurance premium caps, suggesting management has implemented cost-control mechanisms for a significant expense category that has seen substantial inflation. This demonstrates financial foresight in an inflationary environment where healthcare costs are escalating.

The agreement's positioning as a "foundation for upcoming Joint Collective Bargaining Agreement negotiations" as the Hawaiian Airlines merger progresses reveals a sequential integration strategy. Rather than delaying to negotiate a combined agreement, Alaska has chosen to establish baseline terms that will likely influence the framework of the eventual joint contract, potentially accelerating the integration timeline while establishing cost parameters for the combined entity.

SEATTLE, Feb. 28, 2025 /PRNewswire/ -- Alaska Airlines' more than 6,900 flight attendants, who are represented by the Association of Flight Attendants (AFA), have ratified a new three-year contract. The agreement includes significant improvements including increased pay (including boarding and a ratification payment), greater flexibility and scheduling enhancements, better benefits and more.

This is the eighth ratified labor contract between an Alaska Air Group company and one of our represented workgroups in the last three years aimed at improving wages, quality of life, and supporting our company's long-term success. Alaska Air Group is on a journey to transform our business, and our flight attendants are one of many groups critical to our vision in creating a remarkable travel experience for our guests.

More than 90% of Alaska flight attendants voted, and the agreement passed by 95%.

"One of the many reasons our guests choose to fly Alaska is our flight attendants and the warm welcome, fantastic service and commitment to safety they provide onboard," said CEO Ben Minicucci. "I'm glad to have them working under a new contract that values their contributions to Alaska, and I'm grateful to our colleagues at AFA who bargained with determination and fierce dedication for our flight attendants. We are focused on making Alaska Airlines a place for the best people in the business to grow their careers, and this new contract reflects that."

"This agreement marks a major milestone for Alaska Airlines Flight Attendants. It reflects their essential role in ensuring both safety and operational excellence," said Jeffrey Peterson, AFA Alaska Master Executive Council (MEC) President. "Furthermore, it will immediately and significantly improve their lives while setting a strong foundation for upcoming Joint Collective Bargaining Agreement negotiations as we move forward with the merger between Alaska Airlines and Hawaiian Airlines."

Effective March 2, 2025, the new contract includes increased pay (including boarding pay, a newly implemented market rate adjustment and more), work rules that maintain a 10-hour and 30-minute hour duty day (the shortest in the industry, alongside Southwest) and improvements in many sections of the contract such as scheduling, caps on insurance premiums and more.

The previous contract became amendable in December 2022. Contracts in the airline industry do not expire. Once they become amendable, the current contract remains in effect until a new agreement is ratified.

About Alaska Air Group

Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, with McGee Air Services a subsidiary of Alaska Airlines. With hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco, we deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia and the Pacific. Alaska is a member of the oneworld Alliance with Hawaiian scheduled to join in 2026. With oneworld and our additional global partners, guests can earn and redeem miles for travel to over 1,000 worldwide destinations. Guests can book travel at alaskaair.com and hawaiianairlines.com. Learn more about what's happening at Alaska and Hawaiian. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as "ALK."

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SOURCE ALASKA AIRLINES

FAQ

What are the key benefits in Alaska Airlines' (ALK) new flight attendant contract?

The contract includes increased pay with boarding pay, market rate adjustments, a 10.5-hour duty day, improved scheduling flexibility, and caps on insurance premiums.

When does Alaska Airlines' (ALK) new flight attendant contract take effect?

The new contract becomes effective March 2, 2025.

What percentage of Alaska Airlines (ALK) flight attendants approved the new contract?

95% of flight attendants approved the contract, with a 90% voter turnout.

How many flight attendants are covered under Alaska Airlines' (ALK) new contract?

The contract covers more than 6,900 Alaska Airlines flight attendants.

How does Alaska Airlines' (ALK) flight attendant duty day compare to other airlines?

Alaska Airlines maintains the industry's shortest duty day at 10 hours and 30 minutes, matching Southwest Airlines.