American Airlines Pilots Reach Deal With Management On Proposed Tentative Agreement 2.0

American Airlines Group Inc AAL pilots union reached an agreement in principal (AIP) with the American Airlines management on proposed enhancements to the Tentative Agreement (TA).

AAL management had agreed to increase its pilot contract offer by over a billion dollars, aligning it with a tentative agreement reached by competitor United Airlines Holdings Inc UAL and its pilots.

The board mentioned that this AIP includes the improvements to the current TA discussed by the parties last week and additional improvements.

Related: American Airlines Faces Voting Delay For Pilot Contract Offer For 'Indefinite Time': Report

The APA stated that the revised agreement needs approval from its board, after which it would be sent for a ratification vote.

Contingent on United pilots ratifying their agreement in principle, all AAL annual pay rate increases will be adjusted from May 2 to the preceding January 1 of each respective year during the contract.

Contingent on United pilots ratifying their agreement in principle by January 1, 2024, American Airlines pay rates will increase to match the United and Delta Air Lines, Inc. DAL pay rates beginning during the contractual month after their respective snap-up clauses have been completed.

Price Action: AAL shares are trading higher by 0.91% at $16.72 premarket on Friday.