FedEx has reached a tentative agreement with pilots that will keep its delivery unit up in the air.
The pilot's union had voted in favor of a strike earlier this month seeking higher pay, the package delivery company.
The Air Line Pilots Association (ALPA) had voted "overwhelmingly" in favor of a strike if needed when it had entered the final stages of contract negotiations.
The agreement prevents a possible strike after 99% of about 6,000 FedEx Express pilots that ALPA represents voted in favor of one.
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Pilots had asked the company to meet recently improved industry standards for compensation.
Pilots’ unions reportedly have more leverage to push for increased pay and changes in scheduling practices, following the shortage of pilots industry-wide that came about as carriers encouraged retirement during the COVID-19 pandemic.
Several carriers have been involved in contract negotiations.
Earlier this month, Southwest Airlines pilots voted to authorize a potential strike.
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United Airlines pilots have been picketing at major airports across the nation, demanding higher pay and a better work-life balance in negotiations with management over a new contract.
American Airlines pilots have agreed in principle on a new contract ahead of a busy summer travel season.
Pilots have been looking to match or beat the deal that Delta Air Lines reached with its pilots earlier this year, which raised pay rates by 34% over four years.
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FedEx did not provide any further details on the agreement.
FOX Business has reached out to FedEx and the ALPA for further comment.
Reuters contributed this report.
