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American Airlines offers to raise pilot salaries by 17% through the end of 2024

American Airlines is offering pilot raises of nearly 17% through the end of 2024, a sign that the airline is trying to address the workforce shortage that has plagued the industry.

CEO Robert Isom said Thursday the proposal would boost pilot wages at American to levels detailed in a tentative agreement between United Airlines and its pilots. Isom said in a video sent to pilots that the airline’s employees “will be paid well, and paid competitively, no matter what.”

According to Isom, a Boeing 737 captain at the top of the proposed pay scale would earn a base salary of about $340,000 per year by the end of 2024. Senior captains on large aircraft such as the Boeing 777 will earn approximately $425,000 per year. year. The company is also offering premium for revaluation, better profit-sharing program and other add-ons, he said.

American, which is based in Fort Worth, Texas, lost $2 billion last year but is seeing strong revenue in 2022 as travel recovers from the worst of the pandemic.

The Allied Pilots Association, which represents the airline’s roughly 13,000 pilots, did not immediately respond to a request for comment from The Associated Press.

A spokeswoman for the union told CNBC last week that American was “trying to fly airplanes without pilots.” The allegations prompted lawmakers including Democratic Rep. Ro Khanna and independent Sen. Bernie Sanders to call for hefty fines for airlines that schedule flights they cannot staff.

American recently dropped flights to four cities in Iowa, Ohio and New York due to a lack of regional pilot,

Other airlines in talks

United pilots, who currently earn more than counterparts in the US, have until July 15 to vote on a deal that would give them nearly 14% raises through 2024.

Pilots from Delta, Southwest and Alaska are negotiating new contracts. they have picketed at airports complaining that the lack of staff meant they had to fly too many flights and were at risk of fatigue.

The news comes ahead of what is expected to be a holiday travel weekend the busiest since the pandemic started. Delta has warned “Operational Challenges” Preemptively offered free rebooking for passengers flying during and during the 4th of July weekend. airlines and the Federal Aviation Administration have blamed each other to staff shortages leading to cancellations and delays.

CBS News’ Christopher Brooks and Peter Greenberg contributed reporting.

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