According to the most recent draft of the contract, American Airlines (A1G) (AAL) is promising its pilots a 19% salary raise over the course of two years.
If the new contract is approved, the airline will give its pilots a 19% wage rise over the subsequent phases:
- On the day the contract is signed, pilots will receive a 12% pay increase.
- After a year, another 5% increase
- 2% more after two years.
The Allied Pilots Association union board must still study the tentative deal before it can be approved by the airline’s 15,000 pilots. The most recent offer exceeds the airline’s last request, made in June 2022, which represented an overall increase of 17% over the preceding 18 months.
According to reports, pilots who are members of the union are aiming for a three-year wage raise of 20.4%.
American Airlines’ (A1G) (AAL) latest proposal comes as the aviation industry, particularly in North America, deals with an aging pilot population and early retirements, resulting in pilot shortage.
Because of this, it is difficult for carriers to take advantage of the present travel demand and surge.
According to American management firm Oliver Wyman, North America is lacking 8,000 pilots or 11% of the required supply. By 2032, the company predicts a shortage of approximately 30,000 pilots in North America.