American Airlines offers pilots nearly 17% increase in new contract offer

Pilots talk while looking at the tail of an American Airlines plane.

Mike Stone | Reuters

American Airlines According to an internal video seen by CNBC, CEO Robert Isom said Thursday that the carrier has offered its pilots a roughly 17% pay increase under a new contract.

The latest proposal for a union of pilots, the Allied Pilots Association, comes less than a week after rival United Airlines And its pilots’ union reached a tentative agreement that includes more than 14% of overall growth within 18 months, the first major US airline in the industry to reach that point in the pandemic.

The deal faces a vote by United’s pilots that expires in mid-July, and it is still unclear whether it can pass.

Earlier this month, Issom said American would make a new offer for about 15,000 pilots after United released details of the deal.

“United puts forward industry-leading pay, and we matched it for our team,” Issom said in a video message on Thursday, referring to pilot pay rates.

American’s latest proposal comes at a time the industry is grappling with a shortage of pilots, especially at smaller regional airlines. At the same time, demand for travel has soared, catching many airlines flat-footed, especially during peak travel periods.

Earlier this week, American Airlines’ regional carrier Angel Air said that pilots could get triple pay for taking open trips in July, CNBC reported earlier this week.