- Regional carriers operated by American Airlines Group Inc (NASDAQ:AAL) intend to increase pilot compensation by 50% through the end of August 2024, the latest hint that airlines are willing to pay up in the hopes of ending a pilot shortage that has left some travelers with fewer flight options, reported CNBC.
- This will pressure other airlines, as the raise makes the regional airlines pilots the highest paid in the country.
- Related: United States Faces Severe Pilot Shortage, Searches For Solution: CNBC
- The temporary increments, including separate, permanent pay increases, will boost hourly wages for Piedmont Airlines' first officers in their first year of flying to $90 an hour, up from $51 an hour, according to the company.
- First-year captains will be paid $146 per hour, up from $78. The airline's CEO stated that the temporary price hikes could be extended if necessary.
- "Attrition of the regional pilots, particularly the captains, has really spiked to the point where we're not able to put our fleet in the air," Piedmont CEO Eric Morgan told CNBC.
- Price Action: AAL shares are trading lower by 10.40% at $13.17 on the last check Monday.
- Photo via Wikimedia Commons
