NEW YORK (TheStreet) -- Delta Air Lines (DAL) has reached a tentative contract agreement with its pilots union, members said yesterday in a letter, The Wall Street Journal reported. Details of the contract were not disclosed.
"This agreement represents the culmination of tremendous effort on your behalf," Delta MEC Chairman Mike Donatelli said in the letter, according to Reuters.
The new labor deal is six months ahead of schedule, the Journal noted.
The deal will be reviewed for seven days by The Delta Master Executive Council (MEC), which is a unit of the Air Line Pilots Association (ALPA), Reuters reported. If approved, the deal will be submitted to Delta's entire pilot base for a vote.
Shares of Delta Air Lines are decreasing by 0.03% to $42.90 in Friday's morning trading session.
While details are not yet known, it is expected that wages will increase after pilots at American Airlines Group approved a contract in January, with a 23% wage hike.
Separately, TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."