American Airlines Paid Its Pilots $230 Million In Retroactive Wages

Photo: Nicolas Economou/NurPhoto (Getty Images)

American Airlines has warned that its third quarter will be less profitable than expected because of the new contract with its pilots’ union, the Allied Pilots Association. Reuters reports that the airline will pay $230 million in retroactive wages for the first four months of 2023 as part of the agreement. However, the nine-figure sum will likely be only a small blemish on the spreadsheet.

The Little Car Company Makes The Electric Junior Car Of Your Dreams

Yesterday, the Allied Pilots Association voted in favor of the new labor deal with American Airlines. The new contract, approved by 72.7 percent of the union’s pilots, will result in an immediate pay raise of over 21 percent. Overall, pilot compensation will increase by over 46 percent over the contract’s four years. The union estimates that 20 percent of the contract’s increased value is from quality-of-life improvements, including increased reassignment pay and vacation benefits. The new deal is on par with the agreement reached by United Airlines and its pilots.

Captain Ed Sicher, Allied Pilots Association President, said in a release:

“The pilots of American Airlines have spoken: It’s time to move forward with a new working agreement that provides substantial monetary gains and quality-of-life improvements. This contract is a big first step toward restoring the wages, benefits, and work rules that were lost during the past two decades while our profession was under continuous assault. As pilots, we hold a tremendous amount of responsibility with every flight we take. It’s a responsibility we take seriously, as evidenced by the U.S. airline industry’s unrivaled safety record, and it’s time for our profession to provide rewards commensurate with its unique demands.”

In the second quarter of 2023, American Airlines saw a record quarterly revenue total of $14.1 billion with a net income of $1.3 billion. There are soaring passenger demands for flights, and airlines must ensure they have pilots to fly their planes tomorrow and years later. They clearly have the financial capacity to compensate their pilots and other employees fairly.