American Airlines Group Inc. and negotiators for its pilots union reached a preliminary agreement on revisions to a proposed contract, including higher pay and benefits that would better align with a more lucrative pending accord at rival United Airlines Holdings Inc.
The new terms include a 21% ratification bonus, plus pay for the first seven months of this year, the Allied Pilots Association said in a message to members Thursday.
American pilots were previously set to start voting on a new four-year contract on July 24. The APA canceled that vote after United reached a better agreement with its union, pushing American’s back to the negotiating table for revisions.
The airline had initially offered to increase the value of its proposal by more than $1 billion to over $9 billion across the four-year term, including a “significant” increase in compensation.
The new agreement is “a contract we’re proud of and one our pilots deserve,” American said in a statement. It didn’t immediately comment on the value of the new agreement. United’s offer is valued at $10 billion over the same term.
The union board will consider the changes in special meetings set for Aug. 2 and Aug. 3. If approved, rank-and-file pilots will then vote on the contract.