Delta Air Lines has offered a 34 percent pay increase to its pilots over three years in a new contract, according to a draft agreement seen by Reuters.

The pilots will get a raise of at least 18 percent raise on the date the contract is signed, another 5% after one year, 4% after two years and 4% after three years, it says.

If the deal is approved, it is widely expected to act as a benchmark for contract negotiations at rivals United Airlines and American Airlines.

Delta pilots have been working without a new contract for nearly three years after their old contract became amendable in December 2019, fuelling frustration.

They voted overwhelmingly in October voted to authorise a strike if negotiators could not reach an agreement on the new contract. (Reuters)