American Airlines raised its pilot contract offer by over $1 billion to match United Airlines’ deal. The new four-year contract is valued at $9 billion. Pilots will receive the same rates and retroactive pay as United’s agreement from July 15th. Additionally, the contract offers increased life insurance and extended sick leave.
The pay increase under the new contract is as follows: 21% this year, 5% in 2024, 4% in 2025, 4% in 2026, and 3% in 2027. These increases will be effective on May 2 each year.
Currently, the average American Airlines pilot earns $124,154 yearly, 90% above the national average. With the new contract, the average pilot’s salary will rise to $150,000 per year.
Following United’s deal, the APA, representing American’s pilots, requested changes to the contract. They believe American’s offer falls short and that pilots deserve at least equal pay to their United counterparts.
The new contract will be put to a vote on Monday by American Airlines pilots. The outcome remains uncertain as the union must secure enough votes for ratification.
| Old Contract | New Contract |
|---|---|
| Pay increase: 10% | Pay increase: 21% |
| Retroactive pay: $10,000 | Retroactive pay: $12,000 |
| Life insurance: $250,000 | Life insurance: $500,000 |
| Sick leave: 10 days | Sick leave: 15 days |
