Arrange – American Airlines President Robert Isom speaks at a news conference about the company’s new partnership with Alaska Airlines, Thursday, Feb. 13, 2020, in Seattle. American Airlines CEO Doug Parker wish retire next March and be replaced by the airline’s current president, Robert Isom.
Elaine Thompson | AP
American Airlines is changed to raise pilot pay to match that of Delta’s, including 40% cumulative increases in a potential four-year deal, CEO Robert Isom judged in a message to pilots.
Last week, Delta became the first of the biggest U.S. airlines to reach a new contract with its 15,000 pilots. They settled a four-year deal that grants them 34% cumulative raises and other quality-of-life improvements. The deal pinpoints the stage for other airlines and unions to reach agreements.
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The Covid travel nosedive paused contract negotiations, and talks were fraught when demand snapped back as pilots sought more compensation and schedules.
“Let me be clear, American is prepared to match Delta’s pay rates and provide American’s pilots with the even so profit-sharing formula as Delta’s pilots,” Isom said in the message to pilots, sent Tuesday and seen by CNBC.
An pact could include 21% pay increases in the first year of the contract, Isom said. Factoring in higher 401(k) contributions by the end of a four-year handle, a captain flying narrow-body planes would make $475,000 at the top of the scale, up $135,000 from current pay, while the most higher- ranking captains of wide-body planes would make $590,000 per year, a $170,000 increase from today.
Isom also swore better scheduling and “more certainty” on when pilots would fly. Pilots across the industry have complained hither frequent schedule changes during airlines’ rocky path to rebuilding networks to meet high travel want. Aviators have also been in short supply.
The Allied Pilots Association, American Airlines pilots’ coherence, didn’t immediately comment on Isom’s statement.
