United Pilots Approve Contract Extension

United Airlines' pilots have voted to approve a two-year contract extension that paves the way for a 22 percent wage increase by 2018.

United's management has made securing labour contracts a major focus following a leadership change in September.

For years, the company struggled to conclude joint contracts for flight attendants and maintenance workers following the 2010 merger of United and Continental, hurting workers' morale.

United expects the pilots' contract extension and a separate deal for technicians, still open for approval, to add about 2.5 percentage points of unit costs for 2016 compared with a year ago, acting chief financial officer Gerry Laderman said.

The airline said it expects unit costs to rise about 1 percent this year, not including the two contract deals.

Out of the 10,569 eligible pilots, 90.94 percent participated in a ratification vote and 79 percent of them approved the agreement, the Air Line Pilots Association (ALPA) said.

"I want to recognise the efforts of both ALPA's and United's negotiating teams. Their hard work enabled us to achieve this ratified contract extension more than a year ahead of the amendable date," United chief executive Oscar Munoz said.

Munoz became CEO in September and spent his first month on the job traversing the United States to meet workers and customers for input on how to improve the airline.

Munoz has been on leave since suffering a heart attack in October.

Acting chief executive Brett Hart said on Thursday United hopes to reach a deal with flight attendants this year.

The agreement with pilots extends the term of the existing contract to January 31, 2019, ALPA said.

The agreement, which provides increases in compensation, also includes terms to ensure that wage rate increases are in line with increases for Delta Air Lines' pilots, if any.