American Airlines pilots endorse a contract that offers big increases

American Airlines pilots agreed to a contract Monday that would increase pilot compensation by more than 46 percent and include benefits and other changes.

Under the contract, the salaries of the company’s pilots were immediately increased by an average of 21 percent upon ratification. By August 2027, total compensation will have increased by more than 46 percent, including salary increases and increased retirement contributions by the airline. The deal is very similar to contracts struck this year by pilots for Delta Air Lines and United Airlines.

Across the industry, pilots have negotiated big raises and other benefits, including greater protection against last-minute schedule changes. The contract wins reflect the strength of the recovery in air travel and the leverage enjoyed by in-demand pilots. At major airlines, pilots can easily earn six-figure salaries. At the end of the career, pilots who fly long-haul international flights typically earn several hundred thousand dollars a year.

“This contract is a huge first step toward restoring the wages, benefits and work rules that we have lost over the past two decades while our profession was under constant assault,” said Capt. Ed Secher, President of the Allied Pilots Association. It represents 15,000 American pilots.

Almost all of the pilots focused on the new contract, with more than 72 percent approving it during two weeks of voting, which closed on Monday. The deal includes about $1.1 billion in immediate and retroactive payments and endorsement bonuses.

In addition to the raises, American pilots will get paid more when they go on vacation, are reassigned, or are in training. The company also agreed to improve life insurance, disability and long-term retirement benefits.

“This agreement will immediately help Americans expand our ability to train pilots to support underutilized aircraft and future aviation and provide pilots with more opportunities to advance their careers,” US CEO Robert Isom said in a statement.

Delta pilots laid the baseline for negotiations in March, when they voted to approve a contract that would raise wages by 34 percent by 2026. Last month, Delta pilots reached a tentative agreement that would raise wages by 40 percent in the coming years.

American, Delta, United and Southwest Airlines all posted record quarterly revenue in the three months that ended in June, reflecting a strong and sustained recovery from the depths of the pandemic, which has been boosted recently by international travel. The Southwest Pilots are still negotiating a new contract.