American Airlines pilots approved a contract Monday that will increase pilot compensation by more than 46 percent and include other benefits and changes.
Under the contract, the salaries of pilots in the company immediately increased by an average of 21 percent upon ratification. By August 2027, total compensation will increase by more than 46 percent, including salary increases and increased airline retirement contributions. The deal is broadly similar to contracts reached this year by pilots at Delta Air Lines and United Airlines.
Across the industry, pilots have negotiated big raises and other benefits, including more protection against last-minute schedule changes. The contract wins reflect the strength of the recovery in air travel and the mobility enjoyed by pilots, who are in high demand. At major airlines, pilots can easily earn six-figure salaries. At the top end of the profession, pilots who fly long international flights typically earn several hundred thousand dollars a year.
“This contract is a huge first step toward restoring wages, benefits and working conditions that have been lost over the past two decades while our profession has been under constant attack,” said Capt. Ed Sicher, the president of the Allied Pilots Association, the union representing 15,000 American pilots.
Nearly all pilots weighed in on the new contract, with more than 72 percent approving it during two weeks of voting, which closed Monday. The deal includes about $1.1 billion in immediate and retroactive payments and ratification bonuses.
In addition to the raises, American pilots will receive more pay when they are on vacation, reassigned or in training. The company also agreed to improved life insurance, long-term disability and retirement benefits.
“This agreement will help American immediately expand our pilot training capacity to support unused aircraft and future flight and give our pilots more opportunities to advance in their careers,” said of American’s chief executive, Robert Isom, in a statement.
Delta pilots set a baseline for negotiations in March, when they voted to approve a contract that would increase wages by 34 percent by 2026. United pilots last month reached a tentative agreement that would increase of salary by 40 percent in the coming years.
American, Delta, United and Southwest Airlines each reported quarterly earnings in the three months ended June, reflecting a strong and sustained recovery from the depths of the pandemic, boosted recently by international travel. Southwest pilots are still negotiating a new contract.
