Profit Sharing Plan

American’s approach to restructuring looks ahead to a point where our airline emerges a strong and profitable company in which employees directly benefit from the company’s success.

 

Our agreements with the TWU and APFA, as well as agreed-to changes with our Agents Representatives and Planners, provide for a first-dollar profit sharing plan that, in contrast to our current plan, ensures a payout in any year the company realizes a profit. We can achieve consistent profits with the right business plan and cost structure, as demonstrated by our industry competitors that have gone through restructuring.

 

For our flight attendants, Agents, Representatives, and Planners, as well as the TWU-represented employees, we will be implementing a revised profit sharing plan that would set aside 5 percent of pre-tax income after the first dollar of profits into a fund. Those profits would then be equitably distributed to employees based on each individual’s eligible earnings.

 

The company initially proposed profit sharing of 15 percent for all employees during our 1113 negotiations. However, we reallocated some of the proposed profit sharing income to increase pay rates to address the concerns and priorities that matter most to our flight attendants, Agents, Reps and Planners, and our TWU-represented employees. We were able to do so because the company is confident in our business plan and the profits it will generate. Maintaining employee participation in the profit sharing plan is also a priority, as all employees should benefit from the future success of American.