American Airlines is now offering pilots a 17% pay raise as part of a new contract proposal. Dallas News reports that this contract proposal is similar to Chicago's United Airlines offered to its pilots. The proposal adds $2 billion in extra compensation to its pilots. The offer comes as the airline looks to increase its pilot ranks as it struggles to keep up with the demand amid the pilot shortage.
American Airlines CEO Robert Isom released a video message to his employees saying that he made a commitment to all of his team members and that includes improving the pilot proposal. Isom called on pilots to get the deal sooner than later, offering extra signing bonuses and retroactive pay increases if the if the deal is ratified by Sept. 30.
Dallas News reports that the contract must be voted on by pilots. According to the deal, narrowbody captains can make as much as $340,000 a year, while pilots on widebody jets can make up to $425,000 a year. According to NBC News, the union has argued for a better contract pointing to how the lives of pilots have suffered as the airline continues to suffer delays and cancellations since the travel industry has skyrocketed.
The new deal would give a 16% bump to retirement savings accounts and better profit-sharing. American Airlines is also holding negotiations with flight attendants. Southwest Airlines is also holding negotiations with pilots and flight attendants. While details of the offer have not been released, Dallas News reports that there would be improvements to scheduling and quality-of-life items.