American Airlines Pilots Ratify New Contract

The four-year agreement includes a pay raise of 40 percent over the next four years.

American Airlines (NASDAQ: AAL) pilots will soon be bringing home more money as their new contract with the carrier has been ratified. 

On August 21 the pilots, represented by the Allied Pilots Association (APA), accepted a new four-year agreement that includes a pay raise of 40 percent over the next four years. According to the airline, the contract “will deliver more than $9 billion of compensation and quality-of-life benefits to American’s 15,000 pilots.”

“[It] is a really great day for our pilots and airline,” said American Airlines CEO Robert Isom. “This agreement will help American immediately expand our pilot training capacity to support underutilized aircraft and future flying and provide our pilots with more opportunities to progress in their careers. We’re grateful for the company and APA negotiating teams who worked diligently and collaboratively to reach an agreement we’re proud of and one our pilots deserve.”

APA officials noted the contract had been four years in the making. As the post-COVID travel boom exacerbated the pilot shortage, pilots sought additional compensation. In addition, they noted their previous pay was not in line with industry standards, given the majority of major airlines’ profitability.


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