Aviation360 MEA

American Airlines pilots have ratified a new contract with the Fort Worth-based carrier, securing salary increases exceeding 41% spread across four years. This agreement was further improved to remain competitive with the rising contract terms observed at other major airlines.

The contract vote garnered remarkable engagement, with over 95% of eligible American Airlines pilots participating, and of those, 72.7% voted in favor of the contract.

This settlement effectively concludes years of negotiations and tense contractual disputes, a period characterized by a scarcity of pilots across the aviation sector, leading to substantial wage hikes driven by soaring demand for air travel.

In addition to the salary increases, the airline’s 15,000 pilots will also receive a 21% bonus, encompassing the period from January to July.

“The pilots of American Airlines have spoken: It’s time to move forward with a new working agreement that provides substantial monetary gains and quality-of-life improvements,” said Ed Sicher, president of the Allied Pilots Association in statement. “This contract is a big first step toward restoring the wages, benefits, and work rules that were lost during the past two decades while our profession was under continuous assault.”

Some of the new proposed elements of the contract were contingent upon the ratification of the United deal, which the Air Line Pilots Association expects to vote on in September. That includes pilot pay rates increasing to match the United and Delta Air Lines pay rates, pay increases adjusting from the former May 2 date to the preceding Jan. 1 of each respective year during the contract and more.

The contract’s increases to 401(k) contributions will adjust to Jan. 1, 2024, and Jan. 1, 2026, also contingent on the United deal’s ratification.

American’s CEO Robert Isom thanked Sicher for his leadership throughout the process.

“Today is a really great day for our pilots and airline,” said Isom in a statement. “This agreement will help American immediately expand our pilot training capacity to support under-utilized 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.”

Bill Swelbar, an aviation analyst with Swelbar-Zhong Consultancy, said the immediate question after American’s deal considers, is the effect the news has on airlines like Dallas-based Southwest Airlines or the ultra-low cost carriers. Southwest is already under the hot seat to strike a deal with its pilots and flight attendants who have been in negotiations for a few years.