American Airlines is offering its pilots pay raises of about 17% under a new contract, according to CEO Robert Isom.

The proposal to the pilots’ union, the Allied Pilots Association, follows on the deal struck between United Airlines and its pilot’s union less than a week ago, which provided more than 14% in total raises within 18 months. That agreement will be voted upon by the pilots by mid-July, however it is still not clear if it will pass and be finalized.

Isom said, “United put forth industry leading pay, and we matched that for our team.” The difference in the percentages between the deals is due to United’s higher initial pay for pilots.

American’s deal is partly motivated by a shortage of pilots throughout the industry, particularly at smaller regional airlines. That has occurred just as travel demand had begun to soar, following the end of the COVID pandemic.

American is offering other pay increases for training and a 50% premium on reassignments. It also offers retroactive pay increases if the deal is ratified by Sept 30th.

Isom said, “Getting a deal done quickly will help strengthen our training program and ensure we can continue to grow.” 

American has had a troubled relationship with its union, which has repeatedly complained of fatigue from grueling schedules and other quality of life issues, such as schedule changes, which it called for dealing with, in these negotiations.

Pilots for Southwest Airlines, Alaska Airlines and Delta Air Lines have also raised similar issues with their airlines.