American Airlines Announces Pay Hike As This Year's Results Will Be Very Strong

(RTTNews) - American Airlines Group Inc. (AAL) said in a regulatory filing that it would implement a pay increase of 4 percentage points for represented workgroups with ratified joint contracts and for non-contract employees below the director level.

"We had been intending to make this announcement in late January 2015 when we announce our 2014 results, but since we already know this year's results will be very strong, we decided instead to get the news out now and in advance of the New Year," Douglas Parker, CEO, said.

For the flight attendants, the contract ratified last week would now be improved by another 4 percentage points in pay, bringing hourly rates 7 percent higher than the flight attendant pay rates at the other large network airlines.

Groups who have not yet reached ratified joint contracts will now see larger increases when those joint ratified contracts are achieved.

For the non-contract team members below manager level, this increase is in addition to a previously announced 6 percent increase, bringing their total increase to 10 percent.

The flight attendant and non-contract increases will be effective in January 2015.

"The increases announced today are permanent and certain. They are not dependent on fuel prices remaining low, the global economy remaining strong or pandemics staying out of the news," the company said.

AAL closed down 1.2 percent on Tuesday at $50.21.