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American Airlines Pilots on the Verge of Approving Groundbreaking Contract with Significant Pay Raises

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The pilots’ union at American Airlines will vote this month on a new contract that calls for a 21% salary rise this year, in addition to retroactive raises going back to 2020 and more increases in future years.

The May provisional agreement will be put to a vote among union members to establish a new collective bargaining agreement, according to the Allied Pilots Association, which represents more than 15,000 pilots at American. This decision was made, the union’s board of directors declared on Friday.

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The Allied Pilots Association reports that members will cast ballots between July 24 and August 7. The agreement is in force for four years and is amendable beginning on August 1, 2027. Based on qualified earnings, pilots would receive back pay of 4% in 2020, 4% in 2021, 14% in 2022, and around 21% in 2023 for the three months prior to the date of signing.

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The pay increase for American’s pilots would be roughly 21% this year, 5% in 2024, 4% in 2025, 4% in 2026, and 3% in 2027. Pilots would get a 17% 401(k) contribution in 2024, and an increased 18% contribution in 2026. By 2027, that entails a rise of 41.5%.

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In line with Delta Air Lines, the new contract would increase profit sharing to 10% up to $2.5 billion in pre-tax profit and 20% for anything higher. There are also new names for long-term disability, benefits, and other things.

Speaking on behalf of American Airlines, spokesperson Sarah Jantz stated, “We appreciate the Allied Pilots Association board of directors reviewing the proposed tentative agreement on a new four-year contract for American’s pilots. With improved quality-of-life features that are specific to American’s pilots, the agreement would give our pilots salary and profit sharing that are competitive with the highest levels in the industry. Our pilots deserve this contract, which we are happy to provide them.

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