Our People

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 proposal provides for a first-dollar profit sharing plan that, in contrast to our current plan, aligns American with the most generous plan in the industry and 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.

Our proposal provides for an uncapped, first-dollar profit sharing plan that sets aside 15 percent of the company’s pre-tax income to pay out to all eligible employees, proportional to their earnings. This enhanced plan would replace the current plan and the Annual Incentive Plan (AIP) including both the financial and customer experience components.

For example, if American were to earn $1 billion in profit, the percent the employee receives would be approximately 4 percent. For an employee making $50,000 that would be $2,000.

Assumes $3.75B of total annual eligible earnings.

Eligible earnings vary by work group, but include salaries, overtime pay, holiday pay, skill premiums, sick pay, vacation pay, shift differential, overrides and license premiums.

These numbers are subject to negotiations that may impact the total eligible earnings numbers.

These estimates may not be indicative of each year (1-6) of the contract terms due to phasing of certain provisions.