American Airlines Pilot Poised To Receive 19% Pay Hike Over Two Years

American Airlines Pilot Poised To Receive 19% Pay Hike Over Two Years
  • American Airlines Group Inc AAL has offered to increase the pay for its pilot by 19% over two years in a new contract.
  • American pilots will get a 12% raise when the contract is signed, with another 5% hike after a year and another 2% after two years.
  • The latest proposal compares the company's June offer to hike base pay by about 17% through 2024, which could cost the airline more than $2 billion, Reuters reported citing a draft agreement.
  • The American Airlines pilot union board has yet to review and approve the draft agreement. 
  • Also Read: American Airlines Plans To Do Away With First-Class Seats On International Flights.
  • If approved, the hike could act as a benchmark for contract negotiations at rivals United Airlines Holdings Inc UAL and Delta Air Lines Inc DAL.
  • American Airlines has also offered another up to 3% increase in pay rates to match any salary increases at United and Delta.
  • Last week, American Airlines reported 50% Revenue Growth In Q3, Aided By the Pandemic Recovery.
  • Price Action: AAL shares closed at $14.29 on Thursday.

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