British Airways reached an agreement with its pilots’ union to avert the threat of strikes.
The IAG SA unit announced a deal in principle with the Balpa labor group, which will now be put to members with a recommendation from the union. Balpa said the agreement will remove a pay cut imposed during the Covid-19 pandemic and deliver an increase in 2022.
Surging living costs have prompted a wave of strikes across the British economy as unions press for deals in line with inflation. Walkouts have been staged by lawyers, train drivers, postal staff and dock workers. BA pilots hadn’t set out strike dates.
BA is one of a number of European carriers that have faced strikes or the threat of labor disruption this year as travel demand has surged following the easing of travel restrictions. This summer, the UK carrier struck a deal with check-in workers to avert walkouts.
BA saw operational snags over the busy summer holiday season as labor shortages compelled the carrier to cut its timetable. BA will extend the curbs on flights from London Heathrow airport into the winter season, scrapping about 5,000 round-trips or 8% of its schedule.
IAG last week said that earnings for the peak summer quarter exceeded analyst estimates and that there are no signs of waning demand. As pent-up demand for travel fades following the removal of Covid curbs there’s been growing speculation that rising living costs in Europe could begin to put people off flying over winter and into next summer.
