HomeTravelsAmerican Airlines offers pilots raises of up to $64,000 during labor shortage:...

American Airlines offers pilots raises of up to $64,000 during labor shortage: report

American Airlines is offering its pilots a significant pay raise and other concessions in a bid to overcome shortages that have exacerbated flight disruptions in recent months.

CEO Robert Isom has revealed American’s latest contract proposal would increase their pay by 17% – with $2 billion in additional compensation for his roster of 12,700 drivers.

In a video message to staff members on Thursday, the American Airlines boss reportedly said the deal also includes “significant improvements to planning and quality-of-life elements” – a key sticking point for the airlines. pilots who have complained of deteriorating work-life balance during a recent surge in travel demand.

The proposed terms would increase the maximum salary for narrow-body pilots from $45,000 to $340,000. Wide-body pilots can earn up to $64,000 more, for a maximum annual salary of $425,000, Isom said, according to the Dallas Morning News.

The terms of the contract are subject to the approval of a pilot vote. Isom said American Airlines would offer additional signing bonuses and retroactive pay if a deal is reached by September 30.

American airlines
American Airlines offered pilots a 17% salary increase.

American’s offer also includes increases to retirement savings accounts and profit sharing requirements, according to the report.

The Post has contacted American Airlines and the Allied Pilots Association for further comment.

Pilot shortages are one of many contributing factors to the ongoing travel chaos across the United States, which has led to thousands of flight cancellations in the past few weeks alone. Airlines are struggling to speed up services after the industry effectively came to a halt during COVID-19.

American airlines
American Airlines faced a shortage of pilots.

American Airlines last month cited a pilot shortage in its decision to end service to four airports in New York, Iowa and Ohio, according to multiple reports.

Efforts by American Airlines pilots to get a better deal included a recent protest outside the New York Stock Exchange.

CNBC reported that pilots from Delta Air Lines, Southwest Airlines and Alaska Airlines have all been picketing in recent days while pushing for better pay and benefits.

United Airlines offered similar contract terms to its pilots in May. Isom reportedly noted that American’s offer was meant to match that deal.

Flight disruptions are being closely watched ahead of what is expected to be a busy July 4 travel weekend.

American airlines
American Airlines aims to address recent flight disruptions.

Earlier this week, Delta CEO Ed Bastian issued an apology to customers while calling the cancellations and delays “unacceptable.”

Delta also waived rebooking fees over the holiday weekend, warning customers of “potentially difficult” conditions.

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