DAL Delta Air Lines Inc

Pilots at Delta Air Lines Inc. on Thursday ratified a new four-year labor contract that contains big raises and retains the aviators' lucrative profit-sharing formula, reversing widespread rejection of an earlier proposed pact in 2015.

Aviators at the nation's No. 2 airline by traffic voted 82% in favor of the new agreement, according to the Air Line Pilots Association union, with 95% of the eligible voters casting ballots. The deal includes a cumulative 30% raise by January 2019 and maintains an industry-leading profit-sharing plan in which the company pays out a proportionate 10% of pretax income up to $2.5 billion, and 20% on any profit over that amount.

Delta recently substantially trimmed the profit-sharing payout for its other employees, most of whom aren't unionized.

The new deal "ensures Delta pilots remain among the very top of airline pilot wage-earners," said Capt. John Malone, chairman of the union's leadership council. It also triggers a me-too agreement for pilots at United Continental Holdings Inc. that they receive raises if Delta pilots vault ahead.

Atlanta-based Delta said it is pleased with the voting result. The carrier has about 13,000 aviators.

Due to the industry's record profitability, many new labor contracts that have been agreed recently contain big raises and other benefits, causing some investors to worry that airlines are recklessly raising costs. But the unions are striking while the iron is hot, erasing concessions many made in the loss-making years after 9/11.

Write to Susan Carey at susan.carey@wsj.com

(END) Dow Jones Newswires

December 01, 2016 11:35 ET (16:35 GMT)

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