American Airlines is offering its pilots a major pay bump and other concessions as it aims to address shortfalls that have exacerbated flight disruptions in recent months.
CEO Robert Isom revealed that American’s latest contract offer would cut his pay by 17% — along with $2 billion in additional compensation for its roster of 12,700 pilots.
In a video message to employees on Thursday, the boss of American Airlines reportedly said the deal also includes “significant improvements to scheduling-related and quality-of-life items” — a key sticking point for pilots who are deteriorating. Worried about work-life balance. Recent surge in travel demand.
The proposed terms would increase the maximum wage for pilots of narrow-body aircraft from $45,000 to $340,000. According to the Dallas Morning News, wide-body jet pilots can earn $64,000 more for a maximum annual salary of $425,000, Isom said.
The terms of the contract are subject to approval by pilot vote. Isom said American Airlines would offer additional signing bonuses and retroactive pay if a deal is reached by September 30.
According to the report, American’s offering also includes promoting retirement savings accounts and profit-sharing terms.
The post has reached out to American Airlines and the Allied Pilots Association for further comment.
Pilot shortages are one of many factors contributing to the ongoing travel chaos across the United States, resulting in thousands of flight cancellations in the past few weeks alone. Airlines are struggling to ramp up services after the industry effectively halted during COVID-19.
Last month, American Airlines cited a pilot shortage in its decision to end service at 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 at Delta Air Lines, Southwest Airlines and Alaska Airlines have been on strike in recent days to press for better pay and benefits.
United Airlines offered similar contract terms to its pilots in May. Isom reportedly mentioned that American’s offer was meant to match that deal.
The flight disruption is being closely investigated 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, calling the cancellations and delays “unacceptable.”
Delta also waved booking fees again over the holiday weekend as it warned customers of “potentially challenging” conditions.