FILE – American Airlines President Robert Isom speaks at a news conference on the company’s new partnership with Alaska Airlines Thursday, February 13, 2020, in Seattle. American Airlines CEO Doug Parker will retire next March and will be replaced by the airline’s current president, Robert Isom.
Elaine Thompson | AP
American Airlines is ready to raise pilots’ wages accordingly Delta Airlines‘ Pilots on a new deal, including 40% cumulative pay increases over a four-year deal, CEO Robert Isom said in a message to the Pilots.
Last week, Delta became the first of the largest US airlines to sign a new deal with its 15,000 pilots. They ratified a four-year contract granting them 34% cumulative salary increases and other quality of life improvements. The deal sets the stage for other airlines and unions to reach agreements.
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The Covid travel slump paused contract negotiations and talks were tense as demand fell as pilots sought better pay and schedules.
“Let me be clear, American is ready to match Delta’s wage rates and provide American pilots with the same profit-sharing formula as Delta’s pilots,” Isom said in the message to pilots, which aired Tuesday and was viewed by CNBC became.
A deal could include pay increases of 21% in the first year of the contract, Isom said. Allowing for higher 401(k) contributions by the end of a four-year contract, a narrowbody captain at the top of the scale would earn $475,000, $135,000 more than is currently being paid, while the oldest widebody captains would fly airplanes Make $590,000 a year, up $170,000 from today.
Isom also promised better planning and “more certainty” about when pilots would fly. Pilots across the industry have complained of frequent schedule changes amid airlines’ rocky road to re-scheduling to meet high travel demand. Airmen were also in short supply.
The Allied Pilots Association, American Airlines’ pilots’ union, did not immediately comment on Isom’s statement.