4.25.24 – Corporate Greed Soars at American Airlines

Thursday, April 25, 2024

Just weeks after releasing the 2023 AA proxy statement, showing significant increases in CEO Robert Isom’s pay and benefits, American Airlines today reported a loss for the first quarter of 2024 while generating record first-quarter revenue of 12.6 billion and predicting a full-year profit. While Isom states he is “not satisfied” with these results, top executives at American have been handsomely rewarded with healthy compensation packages despite this quarterly loss.

On March 30, 2023, American Airlines published its 2023 SEC Proxy Statement. Page 55 of that document defines the airline comparators used to ensure that CEO Robert Isom’s compensation is competitive with other industry CEOs:

“In order to ensure a competitive design for our executive compensation program, in 2022, our Compensation Committee, with advice and analysis from its compensation consultant, reviewed our program against those of our largest competitors, Delta, United and Southwest” (Source: American Airlines 2023 SEC Proxy Statement)

Isom’s compensation compares to his Delta, United, and Southwest counterparts. Flight Attendants expect the same. Yesterday’s Southwest contract ratification sets a new industry standard.

In 2023, AA CEO Robert Isom received a pay increase resulting in a staggering $31.4 million, which includes:

• base salary, bonuses, and stock awards.
• multiple incentives to retain top talent.
• performance-based metrics of the front line workforce like completion factor and on-time departures.
• confirmed flight privileges in any cabin.
• legal fees for negotiating his compensation.
• 401(k) contributions, and more.

While the Payroll Support Program temporarily banned increases to executive compensation, this restriction has now expired. However, now that the airline industry is profitable again, Robert Isom seems to believe that the profits belong to him.

Meanwhile, new hire Flight Attendants at American Airlines start at $27,000 a year. Robert Isom’s compensation package is now 1162 times that of a new hire Flight Attendant. Corporate greed at its finest. 

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What Can You Do?
Contact Your Congressional Representative Today!
Restore our Right to Strike!

Those of you who have been around for previous negotiations at American and its predecessors are all too familiar with the drawn-out bargaining process under the Railway Labor Act (RLA). Airline management stalls and offers inferior proposals that devalue our profession while rewarding themselves with incentives and bonuses.

APFA and other Flight Attendant Unions are leading the fight to restore the right to strike by calling on our elected officials to urge the National Mediation Board to utilize all provisions of the Railway Labor Act, including “self-help” and Workers’ right to strike at the end of a 30-day cooling-off-period. If you have not already done so, use these two links to call and email your Congressional Representative (keep calling until you’re connected!):

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Systemwide Informational Picketing
Thursday, May 9, 2024

The fight continues, and our Union Siblings across industries and occupations are standing with us in full solidarity. We are encouraged by the addition of an intensive upcoming bargaining schedule implemented by the National Mediation Board. We will now meet for three consecutive weeks, beginning the week of April 29, 2024.

Meanwhile, make a plan to join your co-workers at upcoming events of solidarity and visibility. We will secure a contract recognizing our sacrifices, addressing the current economic environment, and retroactively compensating us for management delays.

In Solidarity,