Southwest Airlines flight attendants have voted down a contract offer reached by negotiators for the airline and the union.

 
The Transport Workers Union Local 556 said Friday that the proposal was voted down 64% to 36%.

A tight labor market in the United States has driven up wages. The shortages are far more acute for pilots amid robust travel demand, enabling unions to secure big gains in new contracts.

While Southwest has yet to reach a contract deal with its pilots, the company is widely expected to match the hefty pay raises at rival carriers.

The company also expects higher aircraft maintenance expense next year. In the meantime, its bid to protect margins by slowing down capacity growth is projected to worsen the cost pressure.

Soaring costs led to a 30% fall in Southwest’s third-quarter profit. #featured #aviation #southwest