American Airlines Announces Plans to Improve Pilot Pay

American Airlines CEO Robert Isom has promised higher pay for pilots.

Isom announced that the airline will revise its pay proposals for its 14,000 pilots, according to a CNBC report.

American has made this decision noting that the pay standards have increased since the company made its most recent offer, which was before the COVID-19 pandemic.

Previously, the airline had offered a four percent date-of-signing increase plus a three percent annual raise after that.

“It was industry-leading at the time we proposed it,” Isom said in a video message to pilots. “As the pandemic wanes, the standard for compensation has gone up.”

Two American subsidiaries had already announced increased pay hikes. Regional carriers Piedmont and Envoy provided big raises and also offered a temporary 50 percent pay hike, which will run through August 2024, to prevent a pilot shortage.

United recently came to an agreement with its pilots’ union, the Air Line Pilots Association, which will be voted on next week. American said it would take other carriers’ ratified agreements into consideration.

“We will take other carriers’ ratified agreements, including United’s, into account and update our pay proposals quickly when details are known,” Isom said. “Our team will be paid well and be paid competitively. You are not going to fall behind network peers.”

Isom also noted that the American’s new proposal would include better benefits and work-life balance provisions.