American Airlines (NASDAQ:AAL) pilots’ union has rejected the company’s offer of as much as double pay for working trips around the holidays, a measure aimed at avoiding a repeat of recent mass flight cancellations.
The Allied Pilots Association’s board of directors voted against the premium pay of at least 150% and double pay for picking up open holiday trips. The union said late Tuesday that it wants more permanent changes to how the airline builds its schedule. The labour union is in the middle of contract negotiations with the airline.
Some airlines have struggled to balance the return of travel demand and understaffing. American canceled more than 2,000 flights in late October and early November after bad weather and a cascade of staffing shortages. Southwest Airlines (NYSE:LUV) has lost $75 million, and Spirit Airlines (NYSE:SAVE) $50 million, facing similiar issues.
Vowing not to repeat the disruptions, American has reached deals for bonus holiday pay throughout the airline, which employs more than 100,000 workers. The airline will pay flight attendants triple for trips between Nov. 23 and Nov. 29 and Dec. 22 and Jan. 2, and also have perfect attendance between mid-November and Jan. 2. At minimum, flight attendants who work trips over those periods will get 150% of their pay.
AAL shares began Wednesday down 36 cents, or 1.6%, to $21.90.
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