FILE – American Airlines CEO Robert Isom speaks at a press conference in regards to the company’s latest partnership with Alaska Airlines, Thursday, February 13, 2020, in Seattle. American Airlines CEO Doug Parker will retire in March next 12 months and might be replaced by the airline’s current CEO, Robert Isom.
Elaine Thompson | AP
american airlines he’s willing to lift the pilot’s pay to match the pay Delta, including a cumulative 40% increase in a possible four-year deal, CEO Robert Isom said in a message to pilots.
Last week, Delta became the primary major US airline to sign a latest contract with its 15,000 pilots. They ratified a four-year deal that provides them a combined 34% raise and other quality of life improvements. The deal sets the stage for other airlines and trade unions to succeed in an agreement.
related investment news
The Covid travel crisis has stalled contract negotiations and talks have been tense as demand plummeted as pilots sought higher pay and schedules.
“I’ll make it clear that American is willing to match Delta’s pay rates and supply American pilots with the identical profit-sharing formula as Delta pilots,” Isom said in a message to pilots sent Tuesday and seen by CNBC.
The deal could include a 21% pay increase in the primary 12 months of the deal, Isom said. Given higher 401(k) premiums by the tip of the four-year contract, a narrow-body captain would earn $475,000 at the highest of the dimensions, a rise of $135,000 over current pay, while the oldest wide-body captains would earn $590,000 per 12 months, a rise of $170,000 from today.
Isom also promised higher planning and “more certainty” about when pilots will fly. Pilots across the industry have complained about frequent schedule changes in the course of the bumpy road for airlines to rebuild their networks to satisfy high travel demand. There have been also no pilots.
The Allied Pilots Association, the union of American Airlines pilots, didn’t immediately comment on Isom’s statement.