Summary
- The new American Airlines deal offers an 18% pay hike and boarding pay.
- The agreement includes $4.2 billion added value to the contracts over 5 years.
- The new agreement, if successful, could set the new industry standard for US-based carriers and benefit flight attendants.
American Airlines earlier this week offered a tentative agreement to the Association of Professional Flight Attendants (APFA). This agreement will see the flight attendants receive an immediate pay boost of 18% along with other improvements to the airline’s existing compensation package. If approved, this new deal will see billions more paid to flight attendants, ending the years-long negotiation.
18% pay rise, boarding pay, and more
On Friday, July 26th, the APFA announced that it had received a tentative agreement from American Airlines for its flight attendants, which, if it does come to fruition, will see the cabin crew members get a “top-of-industry agreement”. The contract will be valid for five years and will see:
- 18% to 20.5% increase in wages on the date of signing.
- 33% to 36% increase in pay scale over the five-year period.
- Annual wage increases of 2.75%, 3%, 3% and 3.5% over the next four years.
Photo: Joe Kunzler | Simple Flying
While there are significant increases in wages, another key point about this agreement is that the flight attendants will now have boarding pay as well. The crew members will be paid 50% of their rate for every minute of a scheduled boarding time.
Overall, the new deal will see $4.2 billion added value to the contracts over the course of five years. The APFA states that this tentative deal would not have been possible if not for the solidarity of 28,000 flight attendants working hard to earn the compensation they deserve through several pickets and decisive strike authorization votes.
Other improvements
The $4.2 billion added value will also contribute to increasing the flight attendants’ 401k, profit sharing, retroactive pay, and more. Essentially, it is estimated that each active flight attendant will experience an average increase in value of $160,000 over the course of five years.
Photo: Markus Mainka | Shutterstock
The following indicates the estimated increase in value of different elements of the compensation package within the first year of the tentative agreement:
|
Element of compensation package |
Increase in value |
|---|---|
|
Wages |
18% to 20% |
|
Boarding Pay |
8.2% |
|
401k |
4.2% |
|
Per Diem |
2.5% |
|
Other Elements |
1.1% |
|
TOTAL Increase |
34% – 36% |
In the event that this agreement is approved, this will be a significant win for the flight attendants at American Airlines, but it will also set a new industry standard (at least among US-based carriers). This would mean, going forward, flight attendants of other American carriers will have this precedent to follow if they feel their airline’s pay-package is not up to industry standards.
American Airlines not the only carrier
Despite the airline failing to reach an agreement with flight attendants just a month ago, it is great that the relevant parties returned to the table for negotiations and reached a tentative agreement. However, American Airlines is not the first airline to reach a tentative agreement.
Related
Alaska Airlines Reaches Tentative Agreement With Cabin Crew
The newly proposed agreement is reportedly a record contract with the carrier.
Photo: Joe Kunzler | Simple Flying
Just over a month ago, fellow American carrier – Alaska Airlines, also reached a tentative agreement with the Association of Flight Attendants (AFA). Under this tentative agreement, flight attendants of Alaska Airlines will see a wage increase of 32%, retro pay of 21 months, a 3% salary increase in 2025, and more.
On the whole, it is a positive sign that airlines are now beginning to offer better pay packages for their hard-working flight attendants. Hopefully, as airlines in the US continue growing, so will the compensation packages for their flight attendants and other staff members.