American Airlines Group Inc. (AAL.US) has reached a labor agreement with the unions, and the salaries of flight attendants will immediately increase by about 20%.

American Airlines Group Inc. (AAL.US) flight attendants have approved a five-year labor agreement, ending one of the most controversial contract negotiations in the industry and giving the flight attendants a 20.5% pay raise in early October. Shortly after the vote, the Association of Professional Flight Attendants released a statement on September 12 stating that 87% of voters had accepted the $4.2 billion labor agreement reached between the union and American Airlines Group Inc. The contract stipulates that starting from October 1, flight attendants' wages will increase by 18% to 20.5%, with an annual increase of 3.5% thereafter. Over the course of five years, wages will increase by 33% to 36%. The contract also includes one-time bonuses. Julie Hedrick, President of the Association of Professional Flight Attendants, said, "This contract is a significant milestone for our flight attendants, providing an immediate 20.5% pay increase and substantial retroactive pay to address the time spent in negotiations." The association represents around 28,000 crew members of American Airlines Group Inc. Flight attendants make up the largest union at the Fort Worth-based airline. The agreement has relieved leaders of American Airlines Group Inc., as they faced the threat of a strike from flight attendants if an agreement was not reached. Transportation Secretary Pete Buttigieg and Labor Secretary Julie Su participated in the negotiations overseen by the National Mediation Board (NMB) in June. Over 160 lawmakers also pushed for NMB to reach agreements throughout the airline industry. In a statement, CEO Robert Isom of American Airlines Group Inc. said, "Reaching an agreement with our flight attendants has always been our top priority, and today, we celebrate reaching this important milestone." Like other airline employees, flight attendants have been seeking pay increases and other improvements to work rules, following negotiations derailed by the COVID-19 pandemic and rising living costs in recent years. United Airlines (UAL.US) is still in negotiations with its flight attendants' union for a new contract, while crew members of Alaska Air Group, Inc. (ALK.US) recently rejected a preliminary labor agreement. Other industries have also seen higher wages in new contracts, some of which were signed after strikes, such as in the automotive and Hollywood industries. On Thursday, about 33,000 Boeing Company (BA.US) employees will vote on a new contract that includes a 25% pay raise, with some employees stating they will reject the new contract. If the new contract is rejected, Boeing Company may face a strike.