American Airlines CEO Robert Isom made this announcement to its pilots:

Hi, everyone. Delta’s pilots recently ratified a new four-year deal – one that is unprecedented in the history of collective bargaining. It’s a deal that profoundly changes the economics of a Delta pilot’s career. And that’s not just for Delta’s pilots.

That deal will determine compensation, benefits and quality of life for pilots across the rest of the industry. That means something extraordinary for American’s pilots.

That’s because our commitment – my commitment – remains unchanged: Our team members – including our pilots will be paid well and they will be paid competitively.

Let me be clear. American is prepared to match Delta pay rates and provide American’s pilots with the same profit-sharing formula as Delta’s pilots.

American’s pilots would receive pay increases of, on average, 21% in the first year of the new contract, begin participation in a much richer profit-sharing program and receive a bump in the company’s annual contribution to your 401(k) in the second year of deal.

The total pay increase for pilots is on average 40% in the fourth year of the deal. Let me give you a few examples of what this would mean.

By the end of the agreement, factoring in base salary and increased 401 (k) contributions from the company, a narrowbody captain at top of scale would make $475,000 a year – or $135,000 more a year than they earn today. A widebody captain
at top of scale would earn $590,000 a year – that’s $170,000 more a year than they earn today.

And participation in the new profit-sharing program will increase the payout pool from 5% of pre-tax earnings to 10%, and up to 20% of earnings above $2.5 billion.

And it’s not just about Delta pay. It’s about making sure this works for American’s pilots. You would see significant improvements to scheduling-related and quality-of-life items. That means improved trip construction and more certainty when it comes to replacement flying and recovery obligation.

A deal like this would be a game changer for our pilots. It would be worth more than $7 billion in incremental compensation, benefits and quality-of-life improvements over the term of the four-year agreement.

This would allow you to join Delta’s pilots as the industry’s leaders in pay, but with more quality-of-life improvements unique to American Airlines.

It is what you deserve, and it can be negotiated and made available quickly.

Like you, I’m extraordinarily excited about the coming new contract and all that it will mean for you and American.

As we proceed down the negotiation homestretch, I plan to reach out frequently to share updates and make sure you have the company’s perspective and our unequivocal commitment to completing a new contract expeditiously.

I want to ensure there is no question of our intent – that is, we want you to be paid as well as your peers. We want you to have the quality of life and benefits that matter most to you. And we don’t want you to have to wait.

Now, let’s get this deal done.

Thanks for listening, and thanks for all you do every day.