American Airlines is offering its pilots a major pay bump and other concessions as it aims to overcome shortages that have exacerbated flight disruptions in recent months.
CEO Robert Isom revealed that American’s latest contract proposal would bump their pay by 17% — with $2 billion in additional compensation for its roster of 12,700 pilots.
In a video message to staffers Thursday, the American Airlines boss reportedly said the deal also includes “significant improvements to scheduling-related and quality-of-life items” — a key sticking point for pilots who have grumbled about deteriorating work-life balance during a recent surge in travel demand.
The proposed terms would increase maximum pay for pilots of narrow-body planes by $45,000 to as much as $340,000. Wide-body jet pilots can earn as much as $64,000 more, for a maximum annual salary of $425,000, Isom said, according to the Dallas Morning News.
The contract terms are subject to approval by a pilot vote. Isom said American Airlines would offer additional signing bonuses and retroactive pay if an agreement is reached by Sept. 30.
American’s offer also includes boosts to retirement savings accounts and profit-sharing terms, according to the report.
The Post has reached out to American Airlines and the Allied Pilots Association for further comment.
Pilot shortages are one of several factors contributing to ongoing travel chaos across the United States that has resulted in thousands of flight cancellations in the last few weeks alone. Airlines are struggling to ramp up services after the industry effectively ground to a halt during the COVID-19.
Last month, American Airlines cited a pilot shortage in its decision to end service to four airports located in New York, Iowa and Ohio, according to multiple reports.
American Airlines pilots’ efforts to secure a better deal included a recent protest outside the New York Stock Exchange.
CNBC reported that pilots for Delta Air Lines, Southwest Airlines and Alaska Airlines have all picketed in recent days while pressing for better pay and benefits.
United Airlines offered similar contract terms to their pilots in May. Isom reportedly noted that American’s offer was meant to match that deal.
Flight disruptions are under close scrutiny ahead of what is expected to be a busy Fourth of July travel weekend.
Earlier this week, Delta CEO Ed Bastian issued an apology to customers while referring to cancellations and delays as “unacceptable.”
Delta also waved rebooking fees over the holiday weekend as it warned customers of “potentially challenging” conditions.
