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American Airlines CEO Robert Isom says carrier ‘is prepared to match Delta pay rates’

In a video message to the company’s pilots, Isom said the airline is willing to boost pay by 40% over four years and improve profit-sharing.

American Airlines CEO Robert Isom says the Fort Worth-based carrier “is prepared to match” rival Delta’s new pilot contract by raising pay a cumulative 40% over four years and improving profit sharing.

In a video shared with American Airlines pilots on Tuesday, Isom said Delta’s deal would determine “compensation, benefits and quality of life for pilots” all over the industry, something he referred to as “extraordinary for American’s pilots.”

“That’s because our commitment — my commitment — remains unchanged: Our team members— including our pilots — will be paid well and they will be paid competitively,” Isom said in the video. “Let me be clear. American is prepared to match Delta pay rates and provide American’s pilots with the same profit-sharing formula as Delta’s pilots.”

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American has been in negotiations for over three years with the Allied Pilots Association, which didn’t immediately respond to Isom’s video message. The APA’s board of directors is meeting this week in Washington, D.C.

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Pilots at Delta Air Lines last week approved a new contract that will raise their pay by more than 30% over four years. It was expected to lead to similar agreements covering union pilots at other major U.S. airlines.

American’s pilots would receive a 21% pay increase on average in the first year of the...
American’s pilots would receive a 21% pay increase on average in the first year of the company's proposed contract, CEO Robert Isom said Tuesday. (Elías Valverde II / Staff Photographer)

Isom said American’s pledge isn’t “just about Delta pay.”

“It’s about making sure this works for American’s pilots,” he said. “You would see significant improvements to scheduling-related and quality-of-life items. That means improved trip construction and more certainty when it comes to replacement flying and recovery obligation.”

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American’s pilots would receive a 21% pay increase on average in the first year, Isom said. Factoring in base salary and 401(k) matches, captains operating narrow-body planes, typically used for short-haul domestic and international flights, would make $475,000 a year at the top of the scale, a $135,000 bump from what they earn today. Captains piloting wide-body planes, larger aircraft that typically fly long hours non-stop, would make $590,000 at the top of the scale, or $170,000 more than the current salary.

The pilots’ contract would cost the company over $7 billion in incremental compensation, benefits and other improvements, Isom said.

Pilots at Southwest and United also are in contract talks. Leaders at all four major airlines have said they watch discussions at other companies closely, and often pledge to match offers.

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