American Airlines’ pilots union will vote this month on a new contract, a deal that proposes about a 21% pay raise for this year on top of back-dated raises going back to 2020 and more increases in years to come.
On Friday, the Allied Pilots Association, which represents American’s more than 15,000 pilots, announced the union’s board of directors voted to send the tentative agreement, which was reached in May, to its membership for a ratification vote to become a new collective bargaining agreement.
According to the Allied Pilots Association, members will vote from July 24 to Aug. 7.
The contract is effective for four years and will be amendable on Aug. 1, 2027. Pilots would be back paid, based on eligible earnings, 4% from 2020, 4% from 2021, 14% from 2022 and about 21% for 2023 in the three months preceding the date of signing.
American’s pilots would receive about a 21% increase for this year, 5% in 2024, 4% in 2025, 4% in 2026 and 3% in 2027. In 2024, pilots would receive a 17% 401(k) contribution, and in 2026, the contribution would increase to 18%.
That’s a 41.5% raise by 2027.
The new contract would improve profit sharing to match Delta Air Lines’ at 10% up to $2.5 billion pre-tax profit and 20% for anything above. There are also new terms for benefits, long-term disability and more.
“We appreciate the Allied Pilots Association board of directors’ review of the proposed tentative agreement on a new four-year contract for American’s pilots,” said American Airlines spokesperson Sarah Jantz. “It’s an agreement that would provide our pilots with pay and profit sharing that match the top of the industry with improved quality-of-life provisions unique to American’s pilots. It’s a contract we’re proud of and one our pilots deserve.”
Meanwhile, the union for pilots at Dallas-based Southwest Airlines is asking federal labor regulators to be released from mediation with the carrier amid a three-year contract battle. It would be a step closer to a strike during some of the busiest travel periods.
Flight attendants and passenger service agents are also still in negotiations with American.
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