FILE – American Airlines President Robert Isom speaks at a news conference in regards to the company’s latest partnership with Alaska Airlines, Thursday, Feb. 13, 2020, in Seattle. American Airlines CEO Doug Parker will retire next March and get replaced by the airline’s current president, Robert Isom.
Elaine Thompson | AP
American Airlines is ready to boost pilot pay to match that of Delta’s, including 40% cumulative increases in a potential four-year deal, CEO Robert Isom said in a message to pilots.
Last week, Delta became the primary of the most important U.S. airlines to succeed in a latest contract with its 15,000 pilots. They ratified a four-year deal that grants them 34% cumulative raises and other quality-of-life improvements. The deal sets the stage for other airlines and unions to succeed in agreements.
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The Covid travel slump paused contract negotiations, and talks were fraught when demand snapped back as pilots sought higher compensation and schedules.
“Let me be clear, American is ready to match Delta’s pay rates and supply American’s pilots with the identical profit-sharing formula as Delta’s pilots,” Isom said within the message to pilots, sent Tuesday and seen by CNBC.
An agreement could include 21% pay increases in the primary yr of the contract, Isom said. Factoring in higher 401(k) contributions by the top of a four-year deal, a captain flying narrow-body planes would make $475,000 at the highest of the size, up $135,000 from current pay, while probably the most senior captains of wide-body planes would make $590,000 per yr, a $170,000 increase from today.
Isom also vowed higher scheduling and “more certainty” on when pilots would fly. Pilots across the industry have complained about frequent schedule changes during airlines’ rocky path to rebuilding networks to satisfy high travel demand. Aviators have also been in brief supply.
The Allied Pilots Association, American Airlines pilots’ union, didn’t immediately comment on Isom’s statement.