American Air, pilots reach agreement on revised union contract

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. 

Wages will also be boosted over the term of the contract to match those at United if its aviators approve their deal. The proposal also includes improved medical reimbursements, 401(k) contributions and sick leave terms.

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.