American Airlines Pilots Ratify Contract Offering Big Raises

Pilots at American Airlines authorized a contract on Monday that may improve pilot compensation by greater than 46 p.c and contains different advantages and modifications.

Under the contract, the pay of pilots on the firm instantly elevated a median of 21 p.c upon ratification. By August 2027, complete compensation can have elevated greater than 46 p.c, together with pay raises and elevated retirement contributions by the airline. The deal is broadly much like contracts reached this yr by pilots at Delta Air Lines and United Airlines.

Across the trade, pilots have negotiated huge raises and different positive aspects, together with better safety towards last-minute schedule modifications. The contract victories replicate the power of the restoration in air journey and the leverage loved by pilots, who’re in excessive demand. At main airways, pilots can simply earn six-figure salaries. At the highest finish of the career, pilots who fly lengthy worldwide flights sometimes earn a number of hundred thousand {dollars} a yr.

“This contract is a big first step toward restoring the wages, benefits and work rules that were lost during the past two decades while our profession was under continuous assault,” mentioned Capt. Ed Sicher, the president of the Allied Pilots Association, the union that represents American’s 15,000 pilots.

Nearly all the pilots weighed in on the brand new contract, with greater than 72 p.c approving it over two weeks of voting, which closed on Monday. The deal contains about $1.1 billion in speedy and retroactive funds and ratification bonuses.

In addition to the raises, American’s pilots will obtain extra pay after they go on trip, are reassigned or are in coaching. The firm had additionally agreed to improved life insurance coverage, long-term incapacity and retirement advantages.

“This agreement will help American immediately expand our pilot training capacity to support underutilized aircraft and future flying and provide our pilots with more opportunities to progress in their careers,” American’s chief govt, Robert Isom, mentioned in a press release.

Delta’s pilots set a baseline for negotiations in March, after they voted to approve a contract that will elevate wages 34 p.c by 2026. United’s pilots final month ratified an settlement that may improve pay 40 p.c within the coming years.

American, Delta, United and Southwest Airlines every reported document quarterly revenues within the three months that led to June, reflecting the robust and persevering with restoration from the depths of the pandemic, boosted most just lately by worldwide journey. Southwest’s pilots are nonetheless negotiating a brand new contract.