CHICAGO- United Airlines (UA) has reported a $561 million charge in its Q2 2025 financial results to cover a one-time bonus for flight attendants. The expense is tied to a tentative labor deal currently under union review, with voting underway since July 7.
The charge appears under “labor contract ratification bonuses” and comes as United’s flight attendants, based out of Chicago O’Hare International Airport (ORD), consider a proposed agreement that includes major economic concessions and industry-leading pay improvements.
Representative Photo: United AirlinesUnited $561 Million Flight Attendants Bonus
United Airlines’ Q2 2025 earnings included a special $561 million charge to fund a retroactive bonus for flight attendants, pending the ratification of a new contract. According to PYOK, this figure is part of a broader $6 billion cost over five years if the tentative agreement is approved.
The bonus, categorized as a ratification incentive, aims to compensate for years without a pay raise while the Association of Flight Attendants-CWA (AFA-CWA) and United negotiated new terms.
The ratification bonus alone is expected to average $21,500 per crew member, with some long-serving attendants potentially receiving upwards of $50,000.
The Q2 charge was partially offset by $114 million gained through the sale of non-core assets, softening the immediate financial impact.
United Airlines emphasized that the tentative agreement would bring not just competitive pay, but also improvements in scheduling and other work rules.
Photo credit: Joe PriesComparative Pay Scale
Based on weighted average calculations, United’s proposed flight attendant pay scale now exceeds those of its major competitors. The new average is $68.17 per hour, compared to $67.94 at American Airlines (AA) and $67.14 at Delta Air Lines (DL).
While Delta, Alaska, and American now offer boarding pay, typically calculated at half the regular hourly rate, Southwest Airlines (WN) opted against it in favor of higher flying pay during its 2024 labor negotiations.
However, United’s inclusion of boarding pay positions its flight attendants to earn an average of $3 more per hour than their Southwest counterparts.
This wage differential, combined with improved work rules, is part of the union’s argument to vote in favor of the deal.
Still, skepticism remains among flight attendants, as rejecting the first tentative deal is a common practice in US airline labor relations, often resulting in extended negotiations but occasionally leading to better terms.
Photo: AFA-CWAFinancial Implications and Strategy
Beyond the $561 million bonus, the entire tentative contract is estimated to cost United roughly $22 billion over its five-year term. This includes retroactive pay, improved schedules, and higher hourly rates.
The AFA-CWA, anticipating member resistance, has brought in a financial advisor to validate United’s pay comparisons and increase confidence in the agreement.
The union asserts that this offer is the most competitive currently available, warning that rejecting the deal may delay any meaningful gains.
Photo: Clément AlloingIndustry Context and Precedents
Historically, major US carriers have seen initial contract offers rejected by unionized labor groups, only to return to the negotiating table for revised deals. Alaska, American, and Southwest have all followed this pattern in recent years.
The AFA-CWA maintains that it wouldn’t move a deal forward for voting if it weren’t confident in its merits.
Still, members will have the final say, and their vote, expected by the end of July, will determine whether this financial commitment becomes a long-term operational cost for United Airlines.
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