April 8 (Reuters) – FedEx and a union representing more than 5,000 of its pilots ‌reached a tentative deal on Wednesday, paving ‌the way for wages increases after years of negotiations.

FedEx’s management ​and the Air Line Pilots Association (ALPA) have been in talks since May 2021.

Under the tentative agreement, pilots’ hourly wages would rise by about 40% ‌in 2026, followed ⁠by an annual increases of 3% from 2028 through 2030, the union said.

Captains ⁠would also receive up to $150,000 in retroactive pay missed during negotiations, while first officers will get ​up to $102,500.

“The ​tentative agreement will ​next be presented to ‌the FedEx Master Executive Council for their review,” the union said, adding that the deal was reached during talks overseen by the National Mediation Board.

FexEx, which operates the world’s largest cargo air ‌fleet by plane count ​with 390 cargo jets and ​313 turboprop planes, ​confirmed the tentative agreement with its ‌pilots’ union.

In 2023, the delivery ​company’s pilots ​had narrowly rejected a tentative agreement that offered a 30% pay increase and improved pension ​benefits over ‌younger pilots’ concerns over outsourcing.

(Reporting by Fabiola ​Arámburo and Mrinmay Dey in Mexico City; ​Editing by Sumana Nandy)