American Airlines will offer pilots raises of almost 17% by 2024. This is a sign that they are trying to address the workforce shortages that have plagued this industry.
Robert Isom, the CEO of American Airlines, stated Thursday that the proposal would increase pilot wages to levels similar to those in the tentative agreement between United Airlines pilots and United Airlines. In a video message to pilots, Isom stated that the airline's workers would be "paid well and paid competitively no matter what."
Isom estimates that the base salary for a captain of a Boeing 737 would be about $340,000 per year at the end 2024. Captains of larger planes like the Boeing 777s would be paid approximately $425,000 per year. He stated that the company offers a premium for reassignments and a better profit sharing program, as well as other add-ons.
American, a company based in Fort Worth Texas, has lost $2 billion in revenue last year, but will see stronger revenues in 2022, as travel continues to recover after the worst of the pandemic.
The Associated Press reached out to the Allied Pilots Association for clarification.
CNBC was told last week by a spokesman from the union that American was "trying" to fly planes without pilots. These allegations led lawmakers including Democratic Rep. Ro Khanna, and independent Senator Bernie Sanders to demand that airlines who schedule flights without staffing be subject to severe fines.
American Airlines recently canceled flights to four cities in Iowa and Ohio, as a result of a shortage of regional pilots.
The United pilots who earn more than their American counterparts are currently voting on July 15 to approve a deal that would give them increases of approximately 14% through 2024.
Negotiations are underway for new contracts among pilots at Delta, Southwest, and Alaska. They protested at airports, complaining about understaffing that is making them work too many flights and putting them at risk of becoming fatigued.
This news comes just ahead of the holiday weekend that is expected to be the busiest since before the pandemic. Delta warned passengers about "operational difficulties" over the July 4 weekend, and offered free rebooking to those who fly there. Both the Federal Aviation Administration and airlines have blamed one another for delays and cancellations caused by staff shortages.
Reporting by Peter Greenberg and Khristopher Brooks of CBS News
