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American Airlines offers competitive pay raise to pilots

American Airlines offers competitive pay raise to pilots
American Airlines Pilot Pay Raise: Aiming to set industry standards, a 19% increase offered over two years in a draft agreement.

American Airlines offers competitive pay raise to pilots


According to a draft agreement, American Airlines has offered a 19% pay increase to its pilots over two years. The pilots will get a 12% raise on the date the contract is signed, with another 5% hike after a year and another 2% after two years. The company’s June offer to hike base pay by about 17% through 2024 is estimated to cost American more than $2 billion.

The draft agreement has not yet been approved by the board of American’s pilot union. If approved, it is expected to set the standard for contract negotiations at rival airlines United Airlines and Delta Air Lines. American has also offered an additional 3% increase in pay rates to match any salary increases at United and Delta. This offer comes at a time when the airline industry is facing a shortage of pilots after thousands were laid off during the coronavirus pandemic.

The pilot shortage has made it difficult for airlines to increase their capacity to meet the increasing demand for travel. Last week, American Airlines said that they expect to beoperating at 95%-100% of their pre-pandemic capacity by next year. Delta has said that they expect to have their 2019 capacity restored by next summer.

Are you passionate about aviation and do you dream of becoming a pilot? Stratus Finance is committed to supporting your ambitions through our flight school loans. Whether you’re considering enrolling in flight training or are already on your journey, we provide flexible financing options customized to your needs.

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