American Airlines Pilots' Union Calls Strike Authorization Vote Despite CEO Ready To Match Wage Hikes

The union representing American Airlines Group Inc AAL pilots will take a strike authorization vote in April regarding salary hikes and working conditions as air traffic increases sharply.
Last week, the rival Delta Air Lines Inc DAL pilots approved a new deal that provides a 34% pay boost over a four-year agreement, setting a potential example as other U.S. carriers and their pilots' unions pursue similar contract negotiations.
"American is prepared to match Delta's pay rates and provide American's pilots with the same profit-sharing formula as Delta's pilots," Isom said in the message to pilots seen by CNBC.
Under the pay increases announced by Isom, American pilots would receive pay increases of, on average, 21% in the first year of the new contract and 40% by the fourth year.
The vote announced by the union will conclude on April 30.
"Management must understand that they need to demonstrate the same level of commitment to bargaining that other airline management teams have shown in recent months," the Allied Pilots Association said in a bulletin to members.
The union, which represents more than 14,500 pilots at American Airlines, said it is "cautiously optimistic of management's commitments and presence at the table."
In October, American Airlines offered to increase the pay for its pilot by 19% over two years in a new contract, including a 12% raise when the contract is signed, with a 5% hike after a year and another 2% after two years.
Price Action: AAL shares are up 1.07% at $16.06 during the premarket session on the last check Friday.

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga