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Pilots at FedEx have reached a tentative agreement that could bring major pay increases after years of negotiations, marking a key moment for more than 5,000 aviators.

The deal, announced with the Air Line Pilots Association, now moves closer to a final vote.

Under the proposed contract, pilots would see their hourly wages rise by about 40% in 2026.

Additional annual increases of 3% are set to follow from 2028 through 2030.

The agreement also includes large retroactive payments to make up for missed raises during the long negotiation period.

According to Bloomberg, captains could receive up to $150,000, while first officers may get as much as $102,500.

The agreement comes after talks that began in May 2021 and stretched for nearly five years.

Negotiations were overseen by the National Mediation Board, which stepped in under federal law to help both sides reach a deal.

Union leaders said the next step is for the FedEx Master Executive Council to review the proposal. If approved, the agreement will be sent to union members for a final vote. Until then, the deal remains tentative.

This breakthrough follows a previous attempt in 2023, when pilots narrowly rejected a similar contract.

FedEx Pilot Deal Boosts Pay and Back Pay

That earlier proposal offered a 30% pay increase and better pension benefits but raised concerns among younger pilots about issues like outsourcing, Reuters reported. The rejection forced both sides back to the negotiating table.

The new agreement is seen as a stronger offer, especially with the higher pay increases and retroactive compensation.

For many pilots, the added back pay is a major part of the deal, helping to cover years without updated wages.

FedEx confirmed the agreement and emphasized the importance of its pilots to daily operations.

The company runs one of the world's largest cargo air fleets, with hundreds of jets and turboprop planes delivering packages across the globe. Keeping pilots satisfied is critical to maintaining reliable service.

The negotiations also took place during a time of internal changes at FedEx.

The company has been working to combine its air and ground delivery networks to improve efficiency and reduce costs. This shift has caused concerns among pilots, especially around scheduling and workload.

Because pilots fall under the Railway Labor Act, they cannot strike freely, and contracts do not expire in the same way as other industries.