A new contract has been approved by American Airlines pilots, which will increase their pay by approximately 41% over a four-year period, according to their union.
The Allied Pilots Association reported that 73% of pilots who participated in the survey supported the four-year contract, which was worth $9.6 billion.
According to union President Ed Sicher, this contract is a significant first step towards restoring the wages, benefits, and work rules that were lost during the last two decades while our profession was under constant attack.
According to him, pilots should be rewarded accordingly for their significant commitment during each flight.
The number of pilots in America is estimated to be around 15,000.
Due to the rise in travel revenue, airline unions are able to secure substantial pay raises through leverage.
American, headquartered in Texas, made $1.3 billion in revenue during the second quarter due to strong ticket sales, record-breaking revenue, and a decrease in the cost of jet fuel.
The Allied Pilots Association reported that 73% of pilots who participated in the survey supported the four-year contract, which was worth $9.6 billion.
The pilot unions are in a particularly strong position due to the shortage that is prevalent at smaller carriers. Pilots at American turned down an offer in November of last year.
Another agreement was reached in late July, which was later renegotiated to match a better deal for United Airlines pilots. This year, Delta Air Lines pilot received significant pay increases.
Negotiations are ongoing between the pilots of Southwest Airlines.
According to the Allied Pilots Association, the new agreement with American includes $1.1 billion in one-time payments, ratification bonuses, and immediate pay raises averaging 21%.
According to the union, total compensation will increase by 46% over four years due to annual increases and higher company contributions to retirement benefits.
American Airlines pilots demonstrate in front of the New York Stock Exchange in 2022. Derek French/Shutterstock.
The union stated that the proposal involves a rise in vacation allowances and amendments to improve the work schedules of pilots.
Air industry labor contracts are designed to be virtually impractical due to their non-elapsed dates, as per a federal law.
Rather, they become open to change or “amendment” at the end of their term. Negotiation of the next contract for American’s pilots could begin as early as November 2026.