American Airlines’ passenger service workers approve contract

Passenger service workers at American Airlines Group Inc. approved a five-year contract, the latest in a series of labor deals between unions and airlines.  

The agreement covers about 15,000 employees, including those who work at ticket counters and gates, airport lounge staff and reservation agents, the airline and its union said in separate statements Monday. 

It provides average initial wage increases of 20% and also includes benefits such as enhanced 401K employer contributions and increased profit sharing, according to the statement from the Teamsters.

The contract follows an agreement last year American made with pilots and as it’s in collective bargaining talks with flight attendants. The company and other major US carriers are facing rising cost pressures from labor deals.