American pilots' wages

On Thursday Robert Isom, CEO, American Airlines, said that the carrier has offered its pilots pay raises totalling nearly 17% under a new contract, according to an internal video seen by CNBC. 

The latest proposal to the pilots’ union, Allied Pilots Association (APA), comes less than a week after rival United Airlines and its pilots’ union, Air Line Pilots Association (ALPA), reached a tentative agreement that includes more than 14% in total raises within 18 months.

United was the first major US airline in the industry to get to that point in the pandemic, but it is far from a done deal. The union said on Thursday that it would pause information sessions to pilots, who have to ratify an agreement, so it can evaluate American’s new pitch.

Earlier this month, Isom said that American would make a new offer to the carrier’s roughly 15,000 pilots once the details of United’s deal were released.

American’s latest proposal comes as the US industry is struggling with a shortage of pilots, particularly at smaller regional airlines. At the same time, travel demand has soared, catching many airlines flat-footed, especially during peak travel periods.

Unions will also weigh the impact of sky-high inflation that hit 8.6% last month in their contract negotiations.

“Getting a deal done quickly will help strengthen our training programme and ensure we can continue to grow”, said Isom.

APA’s relationship with American has been one of the most fraught in the industry. The union has repeatedly complained about fatigue from gruelling schedules and other quality of life issues, such as schedule changes, issues it wanted addressed in the next contract.

American Airline pilots have picketed to protest working conditions and a lack of progress in negotiations.

Pilots for Alaska Airlines, Delta Air Lines and Southwest Airlines, have also picketed for similar reasons. Delta’s pilots most recently picketed at airports around the US on Thursday, all three are in contract negotiations.

ALPA said that it will hold a special meeting next week to evaluate the impact of American’s offer on its own tentative agreement, suspending town halls and other presentations.

“We will not rush to a decision and will work as a unified body to find the best course of action for the entire pilot group,” the union said in a statement late Thursday.

www.alliedpilots.org

www.alpa.org

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