American Airlines (AAL.US) reaches labor agreement with union, flight attendants' pay to rise about 20% immediately

American Airlines (AAL.US) flight attendants approved a five-year labor agreement, ending one of the most contentious contract negotiations in the industry and giving flight attendants a 20.5% raise in early October.

Following the vote, the Association of Professional Flight Attendants, which represents about 28,000 American Airlines flight attendants, said in a statement on Sept. 12 that 87% of those who voted accepted the $4.2 billion labor agreement reached between the union and American Airlines. The contract provides for an 18% to 20.5% raise starting Oct. 1, with 3.5% annual raises thereafter, and a 33% to 36% increase in pay over five years. It also includes one-time bonuses and other provisions.

Julie Hedrick, president of the Association of Professional Flight Attendants, said, "This contract is a significant milestone for our flight attendants, providing up to a 20.5% immediate raise, as well as significant back pay to make up for the time spent negotiating." The union represents about 28,000 American Airlines flight attendants.

The flight attendants are the largest union at the Fort Worth-based airline.

The contract agreement gives American Airlines executives a sigh of relief as they faced the threat of a strike by flight attendants. Transportation Secretary Pete Buttigieg and Labor Secretary Julie Su participated in negotiations supervised by the National Mediation Board in June. More than 160 members of Congress also pushed for the NMB to reach an agreement across the airline industry.

Robert Isom, American Airlines' chief executive, said in a statement: "Getting a deal for our flight attendants has been our top priority, and today we celebrate reaching this important milestone."

Like other airline workers, flight attendants have been seeking pay raises and other rule changes after the pandemic disrupted negotiations and living costs have soared in recent years.

United Airlines (UAL.US) is still negotiating a new contract with its flight attendants' union, while Alaska Airlines (ALK.US) flight attendants recently rejected a preliminary labor agreement.

Other industries have also secured higher pay in new contracts, some after strikes, such as the auto industry and Hollywood.

About 33,000 Boeing (BA.US) employees will vote on a new contract Thursday that would give them a 25% raise, some employees say they will reject the new contract. If the new contract is rejected, Boeing could face a strike.