American Airlines pilots have reached an agreement on a new contract, their union said Friday, ahead of a busy summer travel season after years of negotiations with the largest U.S. airline.
The Allied Pilots Association (APA), which represents over 13,000 pilots at Texas-based American, said on Friday it will move forward with completing contractual language before presenting the contract to its board for an approval.
However, the union did not share contract details.
American did not quantify the contract value but said it provides pay and profit sharing that match the top of the industry with improved quality-of-life provisions, Reuters reported.
Two sources with direct knowledge of the matter stated that the contract is for a four-year term with wage rates comparable to those obtained by Delta Air Lines pilots.
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“The contract includes improvements in scheduling, a critical issue for pilots seeking a better work-life balance in a profession that often requires them to spend days away from their families,” the sources said.
The previous contract was due for renewal in 2020. Last year, pilots rejected an offer that included a 19% pay increase over two years.
Industry officials say the Delta pilots’ contract has become a new benchmark for contract negotiations in North America.
American had estimated that matching Delta’s deal would cost it about $8 billion over four years.
Recall that Delta pilots in March ratified their contract, which includes more than $7 billion in cumulative pay and benefit increases over four years.
This agreement underscores the pilots’ bargaining power at a time when airlines are rushing to increase their workforces ahead of what is shaping up to be a busy summer travel season.
American, Delta, United Airlines and Southwest Airlines will hire an estimated 8,000 pilots this year.
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