FedEx Paid $625 Million One-Time Amount Tied to New Pilot Agreement

On June 9, 2026, the FedEx Master Executive Council, represented by the Air Line Pilots Association, said 83 percent of FedEx pilots voted in favor of a new collective bargaining agreement, with 98.5 percent of eligible pilots participating. Capt. Jose M. Nieves, the MEC chair, said the talks included direct negotiations and mediation under the National Mediation Board. The contract took effect June 29, 2026.

FedEx's filing says the agreement included work-rule changes, pay-rate increases, and pension-plan modifications, including an initial pay-rate increase of 40 percent. ALPA said it also provides annual increases of 3 percent from 2028 through 2030. At ratification, captains were described as receiving up to $150,000 in retroactive pay missed during negotiations, and first officers up to $102,500. Richard W. Smith, then chief operating officer, International, and chief executive officer, Airline, said the ratified agreement recognizes outstanding crew members while aligning with FedEx's long-term growth strategy.

Key details

• Coverage: about 5,000 FedEx pilots, represented by ALPA.
• Amendable: December 2030, according to FedEx's filing and ALPA.
• Pension: FedEx said an Employees' Pension Plan amendment increased the projected benefit obligation by $596 million and produced a $141 million pre-tax, noncash mark-to-market gain on an interim remeasurement, primarily from a higher discount rate.
• Outlook: FedEx said it expected yield and volume improvement to more than offset expense increases, including higher costs from the new CBA.

This ratification concludes a nearly five-year negotiation process and reflects the collective decision of the pilot group.

Why it matters

Memphis-based FedEx Express flies the world's largest cargo air fleet, with 391 cargo jets and 317 turboprop planes. Those aircraft are crewed by the ALPA-represented Federal Express pilots whose pay, pension, and work rules now sit under the 2026 contract.