06:53 AM EDT, 08/15/2024 (MT Newswires) -- Alaska Air ( ALK ) flight attendants late Wednesday rejected a tentative labor deal reached with the company in June, setting up the stage for more negotiations between the air carrier and the union representing the attendants.

As part of the deal's ratification process, about 68% of union members voted against the agreement while 32% approved it, according to the Association of Flight Attendants-CWA. The tentative deal proposed to increase the average pay of Alaska Air ( ALK ) attendants by 32%, among other solutions and benefits.

"We remain committed to reaching an agreement that reflects the critical role of our flight attendants and is good for Alaska's long-term success," a spokesperson for Alaska Air ( ALK ) said in an emailed response to MT Newswires. "We will assess the details available to us and reconvene with (the Association of Flight Attendants) to discuss next steps."

The union's master executive council will now survey members of the negotiating committee on why the agreement was rejected, draft revised proposals and seek additional negotiating dates with the National Mediation Board, which was overseeing the talks. "This is our contract, and we will fight to address membership concerns as expeditiously as possible," the union said.

Last month, the airline narrowed its full-year earnings outlook to a range of $3.50 to $4.50 per share from previous projections of $3.25 to $5.25, in part due to the labor deal. Chief Financial Officer Shane Tackett told Reuters at the time that the tentative agreement is expected to impact third-quarter profit by $0.50 a share.

In a separate filing with the Securities and Exchange Commission on Wednesday, the company said it agreed with the Department of Justice to further extend the review period of its planned merger with Hawaiian Airlines parent Hawaiian Holdings ( HA ) until Friday. The review period was previously extended on July 29 until Thursday.

In December, Alaska Air ( ALK ) agreed to acquire Hawaiian Airlines in an all-cash deal worth roughly $1.9 billion, including debt.

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