Union employees at Alaska Airlines approved a contract that will provide pay raises for about 3,000 clerical, office and passenger-service workers.

The International Association of Machinists and Aerospace Workers said Wednesday that the 5-year contract includes 12.3 percent in wage increases and “holds the line” on health-care costs.

Separately, Cowen & Co. analyst Helane Becker raised her estimate of Seattle-based Alaska Air Group’s first-quarter earnings to $1.08 per share from 96 cents per share, citing the company’s improved forecast of short-term costs and solid revenue for airlines. The consensus among analysts surveyed by FactSet was $1.02 per share.

Shares of the Seattle-based company rose $4.23, or 4.7 percent, to close at $95.04 Wednesday.

Unlimited Digital Access. $1 for 4 weeks.