While Federal Reserve economists have abandoned their position that inflation is transitory, they have continued to downplay the risk of a wage-price spiral. We wonder what they call the 14.5% raise that United Airlines agreed last week to give its pilots through the end of next year.
Anyone who has flown recently knows to check their expectations of an on-time departure at the gate. A shortage of pilots and other manpower issues have disrupted flights across the country. As flying has rebounded to near pre-pandemic levels, many pilots have retired. Competition for pilots is fierce. A subsidiary of American Airlines recently announced a 50% wage increase through August 2024.