Alaska Airlines' (NYSE:ALK) flight attendants are on the verge of receiving a substantial 32% average pay increase, following a new three-year tentative labor agreement.

The deal, announced by the union representing the attendants, also pioneers the inclusion of legally binding boarding pay for unionized flight attendants—a first in the industry.

Traditionally, flight attendants in the U.S. are compensated based on an hourly rate that begins once the flight cabin doors are closed, excluding the time spent boarding passengers.

The union highlighted the addition of boarding pay as a key achievement, potentially setting a precedent for significant wage improvements.

While the agreement still requires ratification by members of the Association of Flight Attendants union, it has already averted a possible strike.

This move comes in the backdrop of escalating demands across U.S. airlines for better pay and benefits, spurred by the industry's robust recovery post-pandemic.

In addition to the pay hike, the proposed contract includes enhancements to holiday and overtime compensation, as well as 20 months of retroactive pay.