American Airlines Pilots Approve New Contract Worth Nearly $10 Billion

Key Points

• American Airlines pilots approved a new four-year contract worth $9.6 billion, with 72.7% voting in favor.
• The contract includes a 47% wage increase over its term, retroactive pay, and bonuses, but lacks scheduling flexibility.
• The deal allows American to expand training capacity, addressing previous recovery challenges, but contributes to rising operational costs.

Summary

American Airlines pilots have ratified a new four-year contract valued at $9.6 billion, with a narrow approval margin of 72.7% of the vote. The agreement offers significant wage increases of 47% over its term, including retroactive pay and bonuses, though it does not provide the desired scheduling flexibility for pilots. While the contract supports American Airlines' expansion of training capacity after pandemic-related setbacks, it also contributes to rising operational costs amid fluctuating airfares and market conditions.