Thomas Hayes, chairman and managing member of Great Hill Capital, discusses American Airlines’ market performance and companies cutting prices to keep up with inflation.
American Airlines The airline said Wednesday it would offer flight attendants an immediate 17% pay increase along with a new profit-sharing formula as negotiations on new labor contracts continue.
CEO Robert Isom said: flight attendant He said that while contract negotiations are progressing, “there is still a lot of work to be done.”
The current negotiations began in January 2020, were suspended at the peak of the pandemic, and resumed in June 2021.
“We are committed to reaching a new agreement and now is the time to get it done,” Isom added.
Southwest Airlines and flight attendant union reach tentative agreement
More than 23,000 American Airlines flight attendants belong to the Association of Professional Flight Attendants (APFA), which has asked employees to prepare for a strike after negotiations last month failed to reach an agreement.
American Airlines is offering its flight attendants an immediate 17% pay increase as negotiations over new labor contracts continue. (Joe Raedl/Getty Images/Getty Images)
American Airlines flight attendants are demanding an immediate pay increase of about 33 percent, saying they haven’t received one in more than five years. Union Officer Flight attendants have endured many hardships since the pandemic began, including unruly passengers resisting the controversial mask-wearing mandate on planes, he said.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Arabic | American Airlines Group | 11.62 | +0.12 | +1.04% |
American Airlines and the union are expected to resume negotiations next week. APFA has argued that American’s proposals “remain far from adequate to address the current economic environment” and is seeking release from federally mediated negotiations.
“It’s long past time for management to recognize our contributions to the airline, address new industry standards and pay us fairly,” said Julie Hedrick, president of the American Airlines flight attendants union. “We won’t back down or settle for less than we deserve.”
Thousands of flight attendants picket nationwide amid contract negotiations
American Airlines flight attendants have authorized a possible strike, but an authorization vote is common in collective bargaining and does not necessarily mean a strike will take place. (Giorgio Biera/AFP via Getty Images/Getty Images)
Flight attendants of other airlines, United AirlinesAlaska Airlines and Frontier Airlines are also negotiating new labor contracts.
Southwest Airlines Flight attendants in April ratified a new collective bargaining agreement negotiated by the United Transport Workers of America that includes an average wage increase of 22.3%, with 3% raises scheduled for 2025, 2026 and 2027. The two sides reached a tentative agreement in late March.
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American Airlines flight attendants are seeking an immediate pay increase of about 33%. (Scott Olson/Getty Images/Getty Images)
The company also scrapped its 24-hour on-call system and overhauled its airline reserve system. Flight attendants to get more rest.
In addition, the Southwest contract included extra pay for extra time spent on the ground during a shift, higher pay for irregular flights, and extra pay for extended work days.
Reuters contributed to this report.
