American Airlines offers to increase pilot pay by 19%

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American Airlines (A1G) (AAL) is offering its pilots a 19% increase in pay over two years’ time, based on a latest draft agreement. 

If the new contract is approved, the airline will extend a 19% increase pay to its pilots over the following stages:

  • Pilots will get a 12% raise on the date the contract is signed

  • Another 5% hike after a year

  • A further 2% after two years

The tentative agreement still needs to be reviewed by ​​the Allied Pilots Association union board and ratified by the airline’s 15,000 pilots. The latest offer is higher than the airline’s last proposal in June 2022, which was a total of 17% increase within 18 months.

It is reported that pilots with the union are hoping for a 20.4% pay increase over three years.

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.

This makes it challenging for carriers to capitalize on the current travel surge and demand. 

American management firm Oliver Wyman, estimates that North America is short of 8,000 pilots or the equivalent of 11% of the needed pilot supply. The firm also projects that North America will be short of nearly 30,000 pilots by 2032.

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