American Airlines will pay $9.6 billion over the next four years as part of a new agreement with pilots to increase ages, entitlements, and quality of life benefits to its 15,000 pilots as a part of the new contract. About 72.7% pilots, represented by Allied Pilots Association (APA) voted in favor of the deal.
Under the new agreement, the pilots will receive an immediate 21% increase in compensation, while across the 48-month term, the payment will increase overall by 46%, with effect from August 1, 2023.
The deal also includes one-off bonuses and wage increases to $1.1 billion, including changes to current work schedules.
The latest agreement focuses on enhancements to the pilot's quality of life, where improvements are expected regarding vacation entitlements, reassignment, training pay and much more leading to more reliable passenger service and predictable scheduling for pilots and other crew.
As a part of new agreement, there are added benefits for long-term disability payments, enhanced life insurance, the creation of a new retiree health reimbursement agreement, and a market-based cash balance plan towards the individual 401(k).
“This agreement will help American immediately expand our pilot training capacity to support under-utilized aircraft and future flying and provide our pilots more opportunities to progress in their careers. We’re grateful for the company and APA negotiating teams who worked diligently and collaboratively to reach an agreement we’re proud of, and one our pilots deserve,” said Robert Isom in a statement.
The next discussion regarding pilot wages is scheduled for August 1, 2027 with bargaining to start from November 2026.