Delta Air Lines (DAL.N) has offered a 34% pay increase to its pilots over three years in a new contract, according to a draft agreement seen by Reuters.

The pilots will get a raise of at least 18% raise on the date the contract is signed, another 5% after one year, 4% after two years and 4% after three years, it says.

If the deal is approved, it is widely expected to act as a benchmark for contract negotiations at rivals United Airlines (UAL.O) and American Airlines (AAL.O).

Delta pilots have been working without a new contract for nearly three years after their old contract became amendable in December 2019, fueling frustration.

They voted overwhelmingly in October voted to authorize a strike if negotiators could not reach an agreement on the new contract.

Related Galleries: