American Airlines Increases Offer to Pilots by $1 Billion

American Airlines is giving its pilots added incentive to agree to a new contract.

The Dallas-Fort Worth-based carrier has upped its offer to its pilots by $1 billion in hopes of avoiding a crippling strike. It now stands at $9 billion.

"The wages and retro pay matched the best in the industry — which, at the time, was Delta," American CEO Robert Isom said on a call with pilots Friday. "And the tentative agreement includes significant unique quality-of-life provisions critically important to American’s pilots."

The deal matches the agreement United struck with its pilots, who will receive pay raises ranging from 34 percent to 40 percent. Isom hopes to reach an August ratification.

The attrition of pilots due to mandatory age retirement and other factors make this an advantageous time for them to strike due to the shortage.

American pilots are set to vote on the final deal on Monday. American's management said it would match the pay raise offered by United and retroactive pay.

The offer was apparently raised after word got back that the pilots would not ratify the original proposed contract.

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