An American Airlines plane takes off from the Miami International Airport on May 02, 2023 in Miami, Florida.
Joe Raedle | Getty Images
American Airlines raised its offer for a latest pilot contract by greater than $1 billion to match a preliminary deal last week between rival United Airlines and that carrier’s aviators.
The brand new offer from American Airlines would bring the four-year offer’s value to around $9 billion, and match United pay rates, backpay and other advantages corresponding to sick time and life insurance, CEO Robert Isom said in a message to pilots on Friday.
Airlines and pilot unions had been negotiating latest deals for years. Unions have won more bargaining power within the wake of Covid because the industry grapples with a chronic pilot shortage just as travel demand recovered. Delta Air Lines pilots approved a latest agreement in March for a deal that features 34% raises over 4 years.
American’s pilots were scheduled to begin voting on the present deal on Monday. The brand new offer includes 21% pay bonuses and pay on par with United and Delta, the Allied Pilots Association, their union, said Friday.
Captain Ed Sicher, the union president, said its leadership will weigh “whether management’s comprehensive proposal is worthy of a membership vote.”
Isom said that the corporate will return to negotiations if changes aren’t approved in time for the vote.
“We’ll return to the bargaining table and do what’s essential to get to a deal. It just won’t be done quickly,” Isom said. “We run a fancy business and any changes to what we agreed to — even small ones — can have a profound impact. Reconsideration of all of this stuff would take time.”
