American Airlines and its flight attendants have a tentative agreement on a new contract, four and a half years after the last one became amendable.
Details of the five year deal are now public. Between immediate pay rate changes and the addition of boarding pay, flight attendants will receive up to 28% raises immediately the month following contract ratification. And they’ll get full retro pay for the time spent without a new contract, which can be over $25,000 per crewmember.
This is mostly what American Airlines had been offering throughout the bulk of negotiations. With Southwest flight attendants getting retro pay, that improved the union’s bargaining position. And last ditch negotiations the past few months moved the airline up 1-3% in wages, depending on seniority.
According to the Bureau of Labor Statistics, the economy has experienced 25% inflation since January 2019 when flight attendants last received wages. Raises alone will not make up for this.
- First through sixth year flight attendants will receive immediate 18% raises
- Seventh through twelfth year flight attendants will receive immediate 19% raises
- Cabin crew with 13 years of seniority and higher will receive immediate 20% raises
- Boarding pay will make up the difference for many, making a bigger difference for junior crew working more domestic segments and less for senior crew generally working a lesser number of longer flights. On average the union believes boarding pay represents an 8.2% wage increase.
Overall American estimates that wages under this deal are a hair above Delta’s. American was offering Delta wages months ago. Bear in mind that Delta flight attendants still earn more profit sharing since Delta’s profits are substantially greater.
In June American Airlines was offering 17% wage increases, which matched Delta after its recent pay increase. The union had dropped its demands from 35% increases to 28% increases. American even offered to immediately pay 17% wage increases while bargaining continued. The union rejected this, fearing it would reduce their membership’s will to potentially strike.
Ultimately they did get a little more. They wound up at 18% – though more senior crew, the ones who haven’t been the union’s poster children for suffering under 2019 wages get slightly more.
Here’s the old and new hourly wage table:
| Jan 1 ’19 | New Contract | % Change | ||||
| 1st Year | 30.35 | 35.82 | 18% | |||
| 2nd Year | 32.18 | 37.97 | 18% | |||
| 3rd Year | 34.24 | 40.4 | 18% | |||
| 4th Year | 36.47 | 43.03 | 18% | |||
| 5th Year | 40.16 | 47.39 | 18% | |||
| 6th Year | 45.48 | 53.67 | 18% | |||
| 7th Year | 49.76 | 59.21 | 19% | |||
| 8th Year | 51.35 | 61.11 | 19% | |||
| 9th Year | 52.77 | 62.8 | 19% | |||
| 10th Year | 54.75 | 65.15 | 19% | |||
| 11th Year | 56.25 | 66.94 | 19% | |||
| 12th Year | 58.93 | 70.12 | 19% | |||
| 13th Year+ | 68.25 | 82.24 | 20% |
In subsequent years, flight attendants receive increases to this scale of 2.75%; 3%; 3%; and 3.5%.
What’s a really big deal here is that flight attendants get full retro pay to make up for raises they might have received had they not been without annual increases since January 1, 2020. That means they get back pay to cover hypothetical raises during the worst of Covid even.
- 2020: 3% of pay
- 2021: 4% of pay
- 2022: 4% of pay
- 2023: 10.8% of pay
- 2024: 20% of pay earned through August 31, 2024
The amount of retro pay in a lump sum will depend on a flight attendant’s wages in each year. However, a flight attendant who currently has 17 years of seniority, holding an 80 hour line each month during this period, would receive a $23,000 check. Union officers receive 115 hours of trip removal pay and can work beyond that. They’ll receive at least $33,000.
Per diems go up as well:
So do 401(k) contributions:
And so do premium pay rates for working lead, purser and galley positions.
Both sides were playing chicken with the National Mediation Board over a strike, which the Board didn’t want to dump in the President’s lap in advance of the election. Meanwhile, the union didn’t want to risk a Mediation Board eventually with a majority appointed by a Republican, if the current party in power loses.
Wages wound up where everyone expected. American said all along they would equal the top of the industry, which is Delta, and they’ve been offering Delta’s pay rates, boarding pay, and profit-sharing formula throughout.
The impressive thing here is that flight attendants received full retro pay – all of this time working towards a contract, the airline didn’t save money on pay. Southwest Airlines flight attendants won retro pay in their deal which changed the game.
The big question throughout has been will American Airlines flight attendants vote to ratify any contract that they might reasonably achieve? The union has been promising huge raises – up to 35% right away! – and wasn’t ever going to achieve that. But did that set a baseline that would mean any actual deal would disappoint?
American Airlines flight attendants voted against their negotiated contract after the merger with US Airways, even though that meant defaulting to an arbitration award that was capped at a value less generous than what they’d voted against (the company on its own offered to pay a higher amount).
We’ll see what happens – there has been a lot of talk of voting against this deal – but full retro pay, and the allure of big checks up front, should make a big difference in securing passage.
Meanwhile, we now know a big part of why American Airlines doesn’t expect to earn a profit for the late summer period of July through September.
@Gene: The pleasure is mine. Thank you for your lovely note.
Are flight attendants going to be more productive, friendly, professional, helpful, knowledgeable by 28%? A little bit more fit and attractive by 28% as well? Or are they just going to be 28% uglier (inside and out, top to bottom), heavier and lazier?
@Aaron, your Mom must be really proud.
I plan to vote yes on our new contract proposal…but…your headline and information are not accurate. We are getting an 18-20% raise at MOST and the 20% raise only goes to the most senior flight attendants. Our most Jr flight attendants are only getting a $2-$3 raise per flight hrs and will be lucky to get $2,000 before taxes with the retro pay. I’m 10 years in and am only getting an 18% raise at my current pay scale and estimate $10,000-$15,000 retro pay before taxes which will be taxed at 22%.
Frank gets it because he can see what most don’t
@Aaron… “are flight attendants going to be more productive, friendly, professional, helpful, knowledgeable by 28%…in my observation they already are are… but your additional comments of “a little more fit and attractive by 28% as well? Or are they just going to be 28% uglier (inside and out , top to bottom) heavier and lazier?” I have been on many flights where the flight attendants are very sharp and are in full focus of what their jobs are regardless of their appearance. Every job has their share of the lazy ones just not sure why you have to judge on their appearance. You had my attention on the first question but have to ask were the additional comments even necessary?
Thank you Sandra and your colleagues for the dedication of good service that you provide although some here would never admit to having great service on American and I am not sure that they would take the time to notice good service since they tend to lean more towards the negative. Great work ethics… you can’t go wrong.
I’m not exactly sure how you consider this full retro because it’s definitely not. As another flight attendant already pointed out, your article doesn’t contain entirely factual information and is misleading to the flying public. You make it appear much more grandiose than it actually is. But then again, I’ve never read anything that you’ve written and found it to be, 100% accurate. There are usually misnomers in all your articles.
Have you ever been a flight attendant? Do you know the odd hours, problem-solving, aggressive passengers and making do with what the company gives you to serve with? AA has been shorting up to 49 meals on Transatlantic flights and saying “work it out”! How about 2 days of training and tests that pay us a whooping $75? It is not up to you to decide what we deserve and if the contract is fair. Shame on you.
@A Simons – how on earth is this not full retro? It’s probably more than full retro. (1) It includes raises for 2020 while there were furloughs, that is insanely generous! (2) have you ever gotten subsequent year raises like what’s included for 2023 and 2024 in retro pay?
Tell me what’s incorrect here. And tell your union, too, by the way. I think you are basing your understanding on rumors, not the actual TA..
I hope the regionals follow suit
If we would have received a contract years ago the raise would have been more than 3% and 4% for the first three years. This is how it is not full retro.
Mr. Leff,
How dare you. I’m a 35 year FA with AA and simply put, you’re way off base. You base your article on Cliff Notes while the rank and file have the full version, AND, the facts about our contract and working conditions of the past. I stand by what I said based on facts and 35 years of experience.
@A – I’ve read the TA. I’ve also read how much misinformation flight attendants have, and the rumor mill that’s spreading on this. APFA keeps putting out notes to rebut incorrect claims from the membership…
Gary, I’m an AA flight attendant of 26 years and I am voting Yes. It is a good offer. I hope the other Flight Attendants will realize this as well. Some people will never be happy.
This raise doesn’t count for inflation rates, and the fact these flight attendants got a 33% pay cut that was never restored since 9/11. This TA also doesn’t take into account many work rules that were taken away due to the latest merger, such as no protection for sick calls while implementing a draconian punitive system resulting in flight attendants being terminated, although they get sick and injured on the job many more times than other occupations, and loss of flexibility. So it sounds good on paper, but very far from ideal.