PSA Airlines Joins Piedmont and Envoy in Boosting Pilot Pay

Pilots for the American Airlines subsidiary will get 50 percent pay raises through 2024.

Friday, June 17, 2022 at 01:29 PM ET

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PSA's enhanced flow structure will also match that of its American Airline’s wholly owned peers. [Courtesy: PSA Airlines]

Key Takeaways:

PSA Airlines, a subsidiary of American Airlines, announced a 50 percent pay raise for its pilots through August 2024, becoming the last of American's regional partners to implement such an upgrade.
This increase makes American Airlines' regional pilots the highest paid in the industry, with first officers starting at $90/hour and captains at $146/hour, significantly outpacing competitors.
The enhanced pay and benefits, including an improved career progression structure to American Airlines, are a direct response to a severe pilot shortage that forced American to ground planes and contributed to widespread flight cancellations.
The move by American's regional partners is expected to set a new standard, potentially forcing other regional airlines to increase pilot compensation to attract and retain staff.

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PSA Airlines, a wholly owned subsidiary of American Airlines (NASDAQ: AAL), announced Friday that it would give its pilots a 50 percent pay raise through August 2024, becoming the last of American’s regional partners to announce temporary pilot pay upgrades.

Announcing the deal, the company said it worked with “the Air Line Pilots Association (ALPA) to reach an agreement to greatly enhance pilot pay structure, adding incomparable value to pilots’ compensation, standard of living, and career progression.”