American Airlines Offers To Match Delta Pilot Pay Raise

In a bid to stay competitive, American's top official said the carrier is prepared to offer $7 billion in incremental increases to its pilots over a new four-year contract.

Kimberly Johnson

Thursday, March 09, 2023 at 01:24 PM ET

Verified

American Airlines says it is willing to step up pay incentives for pilots that keeps pace with those offered by Delta Air Lines. [Credit: iStock]

Key Takeaways:

American Airlines is proposing a new four-year contract for its pilots, offering $7 billion in incremental increases to match or exceed compensation offered by Delta Air Lines.
The proposed deal includes a 21% pay increase in the first year, escalating to 40% by the fourth year, along with enhanced profit-sharing and 401(k) contributions.
This move is a direct response to Delta pilots' recently ratified contract, which set a new competitive benchmark for pilot compensation across the airline industry.
Under the new terms, American Airlines captains could see significant salary increases, with top-tier narrowbody captains potentially earning $475,000 and widebody captains up to $590,000 annually.

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In a bid to stay competitive, American Airlines (NASDAQ: AAL) says it is willing to step up pay incentives for pilots that keeps pace with those offered by Delta Air Lines, offering what it says would be $7 billion in incremental increases over a new four-year contract.

The airline is prepared to offer its pilots a compensation package that translates into a 21 percent pay increase in the first year, ramping up to a 40 percent increase by year four, American Airlines CEO Robert Isom said Tuesday.