American Airlines and its pilots union reach labor agreement; pilots must still vote

Associated Press

The pilots union at American Airlines has agreed to vote on a five-year contract proposal that would boost pay by more than 26 percent and offer smaller raises in later years.

Union leadership agreed to put the deal to a vote late Saturday, just before a midnight deadline set by the company. It would increase pilot pay by 23 percent retroactive to Dec. 2 if pilots approve the deal by mid-January, and it includes annual 3 percent raises beginning Jan. 1.

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Airline profits have been soaring to record highs partly because the price of jet fuel has plummeted.

American Airlines Group Inc., based in Fort Worth, Texas, says the deal would mean American pilots would be paid 7 percent more on average than rival Delta Air Lines pilots.