American Airlines Pilots Vote in New Contract Deal with Huge Raises

American Airlines’ pilots voted in a new contract with the Fort Worth carrier with raises of more than 41% over years, a deal that was sweetened even more to keep up with the escalating contracts at other major carriers.

More than 95% of eligible pilots at American participated in the contract vote, with 72.7% in favor.

The deal ends years of negotiations and tense contract fights amid a shortage of pilots across the industry that has driven wages significantly higher with demand high for flying.

On top of raises, American’s 15,000 pilots will get a 21% bonus covering January to July.

“The pilots of American Airlines have spoken: It’s time to move forward with a new working agreement that provides substantial monetary gains and quality-of-life improvements,” said Ed Sicher, president of the Allied Pilots Association. “This contract is a big first step toward restoring the wages, benefits, and work rules that were lost during the past two decades while our profession was under continuous assault.”

Some of the new proposed elements of the contract were contingent upon the ratification of the United deal. That includes pilot pay rates increasing to match the United and Delta Air Lines pay rates, pay increases adjusting from the former May 2 date to the preceding Jan. 1 of each respective year during the contract and more.

The contract’s increases to 401(k) contributions will adjust to Jan. 1, 2024, and Jan. 1, 2026, also contingent on the United deal’s ratification.

American’s CEO Robert Isom thanked Sicher for his leadership throughout the process.

“Today is a really great day for our pilots and airline,” said Isom in a statement. “This agreement will help American immediately expand our pilot training capacity to support under-utilized aircraft and future flying and provide our pilots with 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.”

American previously reached its former agreement in principle back in May. These pay raises could significantly impact consumers and their summer travel plans. The two biggest costs for a carrier are fuel and wages.

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