American Airlines inks deal for huge pay raises for regional pilots

Nearly 4,500 pilots at American Airlines' three major regional carriers will receive massive pay raises that will bump hourly rates to as much as $90 an hour for new pilots.

Envoy and Piedmont, both entirely owned by Fort Worth-based American, reached a deal with the Air Line Pilots Association Friday night that raises pay amid the tightest competition ever among airlines for aviators. PSA Airlines, a third carrier owned by American, reached a deal on pay and incentives and is working out the final details of a contract.

“There is a big demand from customers,” said Piedmont CEO Eric Morgan. “Customers want to fly and we have airplanes parked because we don't have enough pilots.”

The new deals with pilots were an aggressive move for American, which preemptively approached the Air Line Pilots Association with a contract extension two years before the current deal expires. American was able to get enough support from the union's executive board to ratify an agreement without a vote for a deal that extends through 2029.

American and other carriers are in desperate need of pilots, particularly for regional airlines that fly nearly half of the country's flights. American Airlines CEO Robert Isom said earlier this month that the company has been forced to park about 100 regional jets due to a shortage of pilots, even at a time when consumer demand is high and ticket prices are rising.

With the deal, Piedmont pilots will make $51 to $90 an hour when flying and captains will make $78 to $146 an hour. Morgan said the deal at all three of the regional carriers is similar. That equates to about $90,000 a year for new pilots, $150,000 a year for first officers two to three years into their career and about $200,000 for experienced captains.