American Airlines prepared to match Delta's pilot pay rates, CEO says

Antitrust lawsuit against American Airlines and Jet Blue is held in Boston
Robert Isom, CEO of American Airlines, departs the federal courthouse after he testifies in an antitrust lawsuit seeking to unwind the "Northeast Alliance" partnership between American Airlines and JetBlue Airways Corp. in Boston, Massachusetts, U.S., October 3, 2022. REUTERS/Amanda Sabga

CHICAGO, March 7 (Reuters) - American Airlines (AAL.O) is prepared to match the pay rates and profit-sharing formula that rival Delta Air Lines (DAL.N) has provided in its new pilot contract, Chief Executive Robert Isom said on Tuesday.

Isom told American pilots that matching Delta's deal will result in a contract worth more than $7 billion for them.

"A deal like this would be a game changer for our pilots," he said.

Delta's pilots last week ratified a new contract that is widely expected to be a benchmark for contract negotiations at rival carriers.

The Atlanta-based carrier's new contract provides a 34% cumulative pay increase, a lump-sum one-time payment, reduced health insurance premiums and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.

To match Delta's deal, Isom said American pilots would receive on average pay increases of 21% in the first year of contract. Total pay increases in the fourth year of the contract deal would be 40%, he said.

Reporting by Rajesh Kumar Singh Editing by Chris Reese and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.