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American Airlines Adds Profit Sharing to End Workers' Rift

Submitted by jhartgen@abi.org on

American Airlines Group Inc. gave in to pressure from employees and adopted a profit-sharing program, acknowledging the issue was thwarting efforts to improve labor relations and the carrier’s performance, Bloomberg News reported yesterday. American joins the other large U.S. carriers — Delta Air Lines Inc., United Continental Holdings and Southwest Airlines Co. — in splitting some earnings with employees. Starting this year, 5 percent of pretax income, excluding one-time items, will go into the profit-sharing fund, Chief Executive Officer Doug Parker and President Scott Kirby told workers yesterday. The first payout will be in early 2017.

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