Pilots talk as they look at the tail of an American Airlines aircraft.
Mike Stone | Reuters
American Airlines CEO Robert Isom on Thursday said the carrier has offered its pilots pay raises totaling nearly 17% under a new contract, according to an internal video seen by CNBC.
The latest proposal to the pilots’ union, 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% in total raises within 18 months, the first major U.S. airline in the industry to get to that point in the pandemic.
The deal faces a vote by United’s pilots that ends in mid-July, however, and it is still not clear whether it could pass.
Earlier this month, Isom said American would make a new offer to the carriers roughly 15,000 pilots once the details of United’s deal were released.
“United put forth industry leading pay, and we matched that for our team,” Isom said in the video message Thursday, referring to pilot pay rates.
American’s latest proposal comes as the industry is struggling with a shortage of pilots, particularly at smaller regional airlines. At the same time, travel demand has soared, catching many airlines flat-footed, especially during peak travel periods.
Earlier this week, American Airlines’ regional carrier Envoy Air said pilots could receive triple pay for picking up open trips in July, CNBC reported earlier this week.