American Airlines Pilot Contract Offer Increases To $9 Billion Following United Agreement

American Airlines Group Inc (NASDAQ: AAL) has agreed to increase its pilot contract offer by over a billion dollars, aligning it with a tentative agreement reached by competitor United Airlines Holdings Inc (NASDAQ: UAL) and its pilots last week.

What Happened: The revised offer from American Airlines would elevate the value of the four-year offer to approximately $9 billion, putting it in line with United's pay rates and covering backpay and other benefits, including sick time and life insurance, Reuters reported.

Voting on the current deal is set to commence on Monday for American's pilots. The newly proposed offer entails 21% pay bonuses and pay equivalent to that of United and Delta, as announced by the Allied Pilots Association (APA), their union, on Friday.

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United's pilots are set to receive pay raises ranging from 34.5% to 40.2% cumulatively under the four-year agreement.

The APA, representing American's pilots, expressed concerns about ratification on Sunday. According to Dennis Tajer, a spokesperson for the union, United's pilots would earn a minimum of 2% more than their 15,000 counterparts at American. 

In a statement last week, APA President Ed Sicher similarly expressed that his union's current tentative agreement could be much better compared to the one reached by pilots from their competitor airline.

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