American Airlines (NASDAQ:AAL) pilots and its pilots’ union agreed to triple pay for aviators who were able to drop thousands of July flights because of a scheduling program glitch over the weekend, they said Wednesday.
Pilots will also get double pay for peak holiday periods.
The scheduling platform error let pilots drop some 12,000 flights from their schedules, according to the union, the Allied Pilots Association.
The issue sprung up while American and other airlines have been scrambling to avoid flight disruptions during a surge in summer travel demand.
A similar issue occurred in 2017, when a technology problem let American’s pilots take vacation during the busy December holiday period. The carrier offered pilots 150% pay for pilots who picked up assignments.
American and the pilots union are in contract negotiations. APA’s president, Capt. Ed Sicher, told the union’s roughly 15,000 pilots: “I am optimistic it will provide a springboard for us to wrap up our Section 6 negotiations and secure the new collective bargaining agreement that we have been waiting far too long to achieve.”
American recently offered pilots raises of nearly 17% through 2024.
American posted a pre-tax loss of $2.5 billion in 2021. Excluding special items (most notably, the benefit from government payroll support programs), its pre-tax loss came to nearly $7 billion.
Nevertheless, American Airlines stock spent much of last year above $20, putting its market cap roughly in line with pre-pandemic levels and its enterprise value at a multiyear high.
AAL shares began Thursday up 14 cents, or 1%, to $14.03.
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