American Airlines’ Pilots Union Reaches Agreement in Principle (AIP) with Management

The Allied Pilots Association (APA), which represents pilots employed by American Airlines, has made significant progress in their labor contract negotiations. On July 27, 2023, the APA announced that they have reached an Agreement in Principle (AIP) with the carrier’s management.

Previously, a vote on a tentative deal was postponed due to the United Airlines pilots union securing a more favorable agreement in their own contract negotiations. However, with the new AIP in place, American Airlines pilots will see improvements to their pay rates, aligning them with the pay rates offered by United Airlines and Delta Air Lines.

The AIP includes a substantial pay increase for American Airlines pilots, spread over four years. Meanwhile, the United Airlines pilots are yet to vote on their proposed deal, which promises a pay increase of around 40% over a similar period, similar to what Delta Air Lines pilots agreed to back in March 2023.

In response to the progress made in negotiations, American Airlines expressed their appreciation for the collaborative efforts of the Allied Pilots Association. The company sees the new contract as something they can be proud of and believes it is well-deserved by their pilots.

The AIP, along with all related contract details, will now undergo review by the union’s board. If approved, it will be put to a member’s vote in August 2023. The AIP also offers a 21% fully pensionable ratification bonus for specific months in 2023.

As part of the AIP, adjustments to 401(k) contributions will be contingent on United pilots ratifying their own agreement in principle. These adjustments are expected to take effect on January 1, 2024, and January 1, 2026.

These contract discussions have occurred amid an industry-wide pilot shortage, which has bolstered the position of unions during negotiations with airlines. The AIP represents a significant step forward in securing better working conditions and benefits for American Airlines pilots.