American Airlines is offering pilots increases of nearly 17% in new contract proposal

Robert Isom, chief executive of American Airlines, said Thursday that the company has offered a pay raise to its pilots of nearly 17% under a new contract, according to an internal video viewed by CNBC.

The latest proposal for the pilots’ union, the Allied Pilots Association, comes less than a week after rival United Airlines and its pilots’ union reached an initial agreement involving more than 14% of total increases within 18 months, the first major US airline. in the industry to get to that point in the pandemic.

That agreement faces a vote by United’s pilots expiring in mid-July, however, it remains unclear if it has enough support to pass it.

Earlier this month, Esom said America would make a new offer to the company’s nearly 15,000 pilots once details of the United deal were revealed.

Her proposal includes a 6% increase upon signature and then a 5% increase at the start of 2023 and 2024.

“United has offered industry-leading wages, and we’ve matched that for our team,” Isom said in a video message Thursday, referring to pilot pay rates. The difference in percentages is due to higher salaries for United pilots.

The latest US proposal comes as the industry struggles with pilot shortages, particularly at smaller regional airlines. At the same time, the demand for travel has soared, making many airlines unstable, especially during peak travel periods.

Isom said American is proposing further pay increases for training and a 50% premium on reassignments, including for reserve crews. There are other incentives such as retroactive payment if the agreement is ratified by 9/11. 30, he said.

“A quick agreement will help strengthen our training program and ensure that we can continue to grow,” he said.

Dennis Trader, captain of American Airlines and a spokesman for the union, said the APA was reviewing the proposal.

APA’s relationship with America has been one of the most fraught in the industry. The union has repeatedly complained about fatigue from stressful schedules and other quality of life issues, such as schedule changes, issues it wants to address in the next decade.

American pilots sit-in to protest working conditions and the lack of progress in negotiations.

Southwest Airlines, Alaska Airlines and Delta Air Lines pilots were also arrested for similar reasons. The newest Delta pilots were recently arrested at airports around the US on Thursday, all in contract negotiations.

Earlier this week, Envoy Air, the regional carrier of American Airlines, said pilots could get three paychecks for open flights in July, CNBC reported earlier this week.