American Airlines offers pilots pay rises of up to $64,000 during labor crisis: report

American Airlines is offering its pilots a big pay rise and other concessions to help overcome bottlenecks that have exacerbated flight disruptions in recent months.

CEO Robert Isom announced that American Airlines’ latest contract proposal would increase their salaries by 17% — with an additional $2 billion in compensation for the roster of 12,700 pilots.

In a video message to employees Thursday, the American Airlines chief reportedly said the deal also includes “significant improvements in appointment-related and quality-of-life elements” — a major sticking point for pilots who have complained about the deteriorating work-life balance during a recent surge in travel demand.

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

Contract terms are subject to approval by a pilot vote. Isom said American Airlines would offer additional signing bonuses and retroactive payments if an agreement is reached by Sept. 30.

American Airlines
American Airlines offered pilots a 17 percent pay increase.
AP

According to the report, American’s offer also includes top-ups for retirement savings accounts and profit-sharing terms.

The Post has reached out to American Airlines and the Allied Pilots Association for further comment.

Pilot shortages are one of several factors contributing to the ongoing travel chaos in the United States, which has resulted in thousands of flight cancellations in just the past few weeks. Airlines are struggling to ramp up their services after the industry virtually ground to a halt during COVID-19.

American Airlines
American Airlines has addressed a pilot shortage.
AP

Last month, American Airlines cited a pilot shortage in its decision to suspend service at 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 been picketing in recent days while pushing for better pay and benefits.

United Airlines offered its pilots similar contract terms in May. Isom reportedly noted that American’s offer should go with this deal.

Flight disruptions will be closely scrutinized ahead of what is expected to be a busy July 4 travel weekend.

American Airlines
American Airlines is working to fix recent flight disruptions.
REUTERS

Earlier this week, Delta CEO Ed Bastian apologized to customers, calling cancellations and delays “unacceptable.”

Delta also waived change fees over the holiday weekend as it warned customers of “potentially challenging” conditions.