American Airlines introduces pay hike for 14000 pilots to deal labour shortage

 Friday, June 17, 2022 

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American Airlines introduces pay hike for 14000 pilots to deal labour shortage

American Airlines have decided to introduce a pay hike to retain the pilots in the face of increasing labour shortage. This hike might be even more than the package that has been originally proposed to the pilots. The median of annual salary for commercial airline pilots has been $99,640 in May 2021 as published by Bureau of Labor Statistics Occupational Outlook Handbook.

The CEO of American Airlines, Robert Isom said in a video message sent to the pilots that they will not fall behind network peers as the competitive payout is likely to increase productivity. He has also proposed to introduce an initial 4% hike and another 3% hike annually to maintain competitive pay out.

The rescheduling of some routes have been a mandate to deal with the labour shortages as seen in the pandemic and post pandemic days. Many pilot unions and groups has been wanting this for a really long time and hence this message of Isom has been appreciated by many. The airlines in USA has also witnessed a significant overhead costing due to various unexpected exes during the time of pandemic. 

The week Isom’s message came is also the week in which other airlines like Piedmont Airlines and Envoy announces hourly and annual pay rise till at least August 2024. Until then it is expected that overhead costs and methods to manage them will be discovered. 

The issue of pay rise and labour management has been a recurring problem for a really long time. The president of the Allied Pilots Association, Eric Ferguson has accused the decision to be late. According to him the labour shortage problem has been there in the American Airlines for a really long time and the pandemic has only made situation worse. He even stated that American Airlines is now throwing money to the recurring labour shortage problem.

According to him it will be prudent to introduce industry leading contracts than waiting to see the airline response over time. The working conditions and the pandemic lead monetary issue has been the cause for declined productivity. This decision is likely to create an impact in the development of the life style and dependency of pilots of the American Airline.

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