American Airlines pilots approve new contract

The Allied Pilots Association, representing the 15,000 pilots of American Airlines, announced that its members have voted to ratify a tentative agreement that the union and airline management reached on Aug. 1. The pilots approved the new agreement by a margin of 72.7% in favor, with more than 95% of eligible pilots participating in the ratification vote. Voting opened at 1200 Central on Aug. 7 and closed at 1200 Central Monday. The American Arbitration Association administered the voting process and has certified the results. “The pilots of American Airlines have spoken: It’s time to move forward with a new working agreement that provides substantial monetary gains and quality-of-life improvements,” said Capt. Ed Sicher, Allied Pilots Association President. “This contract is a big first step toward restoring the wages, benefits, and work rules that were lost during the past two decades while our profession was under continuous assault. As pilots, we hold a tremendous amount of responsibility with every flight we take. It’s a responsibility we take seriously, as evidenced by the U.S. airline industry’s unrivaled safety record, and it’s time for our profession to provide rewards commensurate with its unique demands.” The new, 48-month contract features approximately $1.1B in immediate, one-time payments and ratification bonuses; annual pay rate increases for the contract’s duration; and enhancements to various benefits and work rules. Capt. Sicher noted that work-rule changes in the new agreement are intended to help ensure more reliable service for passengers and more predictable schedules for pilots. On average, pilots will see an immediate pay raise of more than 21%. Combined with increases in pilots’ 401(k) contributions and subsequent pay raises each May, pilot compensation rates rise by more than 46% during the contract’s duration. In all, the new contract will provide American Airlines’ pilots with approximately $9.6B in additional value versus the prior agreement. It becomes amendable on Aug. 1, 2027, with a provision for the next round of bargaining to begin as soon as November 2026. Quality-of-life improvements represent nearly 20% of the increased value of the new contract, including enhancements to vacation benefits and reassignment pay and increases in training pay and per diem. Improvements in long-term disability benefits, enhanced life insurance benefits, and the creation of a Retiree Health Reimbursement Arrangement and a Market Based Cash Balance Plan for excess 401(k) contributions also deliver substantial value.