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

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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 offering its pilots a new four-year contract with $7 billion in incremental pay increases to remain competitive with Delta Air Lines.
The proposed compensation package includes a 21% pay raise in the first year, escalating to an average of 40% by the fourth year, alongside improved profit-sharing and 401(k) contributions.
This aggressive offer follows Delta pilots ratifying a new contract that increases their salaries by 34% over three years, setting a new industry benchmark for pilot compensation.
By the end of the agreement, top-scale narrowbody captains at American Airlines could earn $475,000 annually, and widebody captains $590,000.

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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.