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American Airlines offers to raise pilot pay 17% by the end of 2024

DALLAS — American Airlines is giving pilots raises of approximately 17% by the end of 2024, a indicator of the leverage that pilots take pleasure in as airways struggle with a labor scarcity.

CEO Robert Isom claimed Thursday that the proposal would improve pilot wages at American
AAL,
+5.71%
to the ranges detailed in a tentative arrangement in between United Airways
UAL,
+1.45%
and its pilots. Isom mentioned in a video clip sent to pilots that the airline’s staff “will be compensated very well, and paid competitively, no subject what.”

Isom said the captain of a Boeing 737 at the prime of the proposed spend scale would make a base wage of about $340,000 a year by the end of 2024. Senior captains of even larger planes, this sort of as Boeing 777s, would get paid about $425,000 a 12 months. He said the company is also presenting a premium for reassignments, a greater income-sharing program, and other add-ons.

American, which is dependent in Fort Truly worth, Texas, misplaced $2 billion past yr but is viewing more powerful profits this year as vacation continues to recuperate from the worst of the pandemic.

The Allied Pilots Affiliation, which represents the airline’s about 13,000 pilots, did not right away answer to a request for comment.

United pilots, who at this time earn a lot more than counterparts at American, are voting by means of July 15 on a offer that would give them raises of about 14% by means of 2024.

Pilots at Delta
DAL,
+1.02%,
Southwest
LUV,
-.60%
and Alaska
ALK,
+.90%
are in negotiations for new contracts. They have picketed at airports while complaining that understaffing is creating them to function far too a lot of flights and risk fatigue.