Southwest, Union Reach Agreement

After two years of talks, Southwest Airlines Inc. and the union that represents its flight attendants have reached a tentative agreement on a new contract, they said.

The news sent the company’s shares soaring.

The union was the last major labor group at Southwest without a new contract. The main stumbling block in the talks had been wages, and the union said the deal met its objectives of providing an “equitable compensation package.”

Details of the deal were not released. The new contract is subject to a vote of union members before it can take effect.

Southwest shares gained $1.23, or 8%, to $17 on the New York Stock Exchange.