American Airlines CEO Robert Isom says the Fort Worth-based carrier “is prepared to match” rival Delta’s new pilot contract by raising pay a cumulative 40% over four years and improving profit sharing.
In a video shared with American Airlines pilots on Tuesday, Isom said their deal would determine “compensation, benefits and quality of life for pilots” all over the industry. American has been in negotiations for over three years with the Allied Pilots Association, which didn’t immediately respond to Isom’s video message. The APA’s board of directors is meeting this week in Washington, D.C.
Pilots at Delta Air Lines last week approved a new contract that will raise their pay by more than 30% over four years. It was expected to lead to similar agreements covering union pilots at other major U.S. airlines.
Isom said American’s pledge isn’t “just about Delta pay.”
“It’s about making sure this works for American’s pilots,” he said. “You would see significant improvements to scheduling-related and quality-of-life items. That means improved trip construction and more certainty when it comes to replacement flying and recovery obligation.”
American’s pilots would receive a 21% pay increase on average in the first year, Isom said. Factoring in base salary and 401(k) matches, a narrowbody captain operating short-haul flights domestically and internationally would make $475,000 a year at the top of the scale, a $135,000 bump from what American pilots earn today. A widebody captain operating typically larger planes that fly long hours non-stop would receive $590,000 at the top of the scale, or $170,000 more than what is earned today.
The pilots’ contract would cost the company more than $7 billion in incremental compensation, benefits and other improvements, Isom said.
Pilots at Southwest and United are also in contract talks. Leaders at all four major network airlines have said they watch discussions at other companies closely, and often pledge to match offers.
