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American Airlines reaches tentative agreement with flight attendants

American Airlines reaches tentative agreement with flight attendants
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Gary Leff Chief Financial Officer | View from the Wing

The Association of Professional Flight Attendants has announced a tentative agreement with American Airlines. The negotiations, which took place in Phoenix without federal mediators, concluded this week.

This development allows American Airlines to present a resolution to labor unrest ahead of its second-quarter earnings call next Thursday.

Although specific details of the agreement have not been disclosed, the union stated that it addresses concerns related to compensation, retro pay, contractual improvements, and preserving work rules. The union’s board will review the agreement on Wednesday, after which more information will be provided to flight attendants along with the timeline and voting process for the agreement.

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Significant raises are expected in the new deal. The union had previously rejected an immediate 17% raise and pay for time spent boarding flights while continuing negotiations. However, they had reduced their demands during discussions but informed cabin crew to expect larger raises.

There is uncertainty about whether flight attendants will approve the tentative agreement if it falls short of their expectations. The current contract resulted from merger-related arbitration after a previous contract was voted down. Similar situations occurred at Southwest Airlines before ratifying their current contract.

American Airlines flight attendants have not received a pay rate increase since January 1, 2019, and inflation has significantly eroded wage value since then. The new deal aims to address this issue and represents the first union flight attendant contract matching non-union Delta on boarding pay. It also includes a profit-sharing formula similar to Delta's but less lucrative due to lower profits at American Airlines.

Key points still under consideration include the final wage increase amount and retro pay for years without raises. Whether retro pay will be as substantial as Southwest's remains uncertain.

This agreement may influence future negotiations at United Airlines where the flight attendants' union plans a strike authorization vote. American Airlines' flight attendants will not strike this year, nor is there enough time for United’s flight attendants to reach an impasse and strike within this year either.

American Airlines issued a statement saying, "We are pleased to have reached a tentative agreement on a new contract with the Association of Professional Flight Attendants. It’s a contract that will provide immediate financial and quality-of-life improvements for American’s flight attendants. It’s a contract we’re proud of and one our flight attendants have earned."

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