American Airlines (AAL.O) and its 28,000 flight attendants have reached a tentative labor agreement, according to their union, the Association of Professional Flight Attendants (APFA). Although the specifics were not disclosed, the deal addresses concerns about compensation, work rules, and retroactive pay.
After more than three years of negotiations, the agreement will be reviewed by the union’s board before members vote on ratification. APFA President Julie Hedrick stated that if approved, the deal will significantly enhance compensation and work conditions for flight attendants.
The White House closely monitored the discussions, with Transportation Secretary Pete Buttigieg and acting Labor Secretary Julie Su previously involved. President Joe Biden praised the agreement, noting it prevents a potentially disruptive strike and underscores the benefits of collective bargaining for workers, companies, and the economy.
According to the airline, the contract promises immediate financial and quality-of-life improvements for flight attendants. The company had previously offered a new contract with a 17% immediate wage increase and higher profit sharing in 2024, but these terms were rejected by the union.
Flight attendants, who had authorized a strike if negotiations failed, have not seen a pay raise in over five years. The union had demanded a 33% immediate raise, citing the challenges faced since the pandemic, including dealing with unruly passengers.
Negotiations began in January 2020 but paused during the pandemic, resuming in June 2021.