According to the Bureau of Labor Statistics, inflation has risen by 25% since January 2019 when flight attendants last received wage adjustments. Raises alone do not fully compensate for this inflation.
First through sixth-year flight attendants will receive immediate 18% raises. Seventh through twelfth-year flight attendants will get immediate 19% raises. Cabin crew with 13 years or more of seniority will see immediate 20% raises. Boarding pay is expected to represent an average wage increase of 8.2%.
American Airlines estimates that wages under this deal are slightly higher than Delta’s current rates. In June, American was offering 17% wage increases to match Delta's recent pay hikes. The union reduced its demands from a 35% increase to a 28% increase but rejected interim wage increases during ongoing negotiations due to concerns it might weaken their strike leverage.
The final agreement includes significant retroactive pay adjustments:
- For the year 2020: an additional 3%
- For the year 2021: an additional 4%
- For the year 2022: an additional 4%
- For the year 2023: an additional 10.8%
- For the year up to August 31, 2024: an additional 20%
The amount of retroactive pay varies based on individual earnings over these years. A flight attendant with seventeen years of seniority working an average line could receive around $23,000 in back pay; union officers may receive at least $33,000 due to trip removal pay.
Per diem rates and contributions to retirement plans also see increases under this new contract, along with premium pay rates for lead positions such as purser and galley roles.
Both parties were negotiating under pressure from the National Mediation Board to avoid a strike ahead of upcoming elections. The Board preferred not to escalate labor disputes that might impact political dynamics.
Ultimately, wages align with industry standards set by Delta Airlines throughout negotiations—covering boarding pay and profit-sharing formulas similarly offered by Delta.
A significant aspect of this deal is full retroactive pay—a feature influenced by Southwest Airlines' recent agreement which included similar terms.
Whether American Airlines' flight attendants will ratify this contract remains uncertain given past voting behaviors and high expectations set during negotiations promising up to a 35% raise immediately—an outcome that was never realistically achievable but could influence voting sentiment.
In historical context, American Airlines' flight attendants previously voted against a negotiated contract post-merger with US Airways despite arbitration outcomes being less favorable financially than what they initially rejected.
The prospect of substantial retroactive payments may play a crucial role in securing approval for this new agreement amidst ongoing discussions about potential voting outcomes.
Meanwhile, these developments partially explain why American Airlines does not anticipate profitability for late summer months from July through September.
Alerts Sign-up
