Skip to content

Airline workers could see pay bump with 737 MAX settlements

Jan. 03, 2020
2 min read
American Airlines 737 MAX stored in Tulsa C10A1001
Airline workers could see pay bump with 737 MAX settlements
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

Airline workers could see a bump in compensation as carriers with Boeing 737 MAX in their fleets agree to settlements with the beleaguered jetmaker.

American Airlines is still negotiating its settlement with Boeing over the troubled jet, which has cost airlines hundreds of millions of dollars as the aircraft's grounding nears its 11th month. Once terms are reached, however, the carrier expects to share some of that amount with workers.

"As we've said before, we expect American will be compensated for the lost earnings that the MAX grounding has caused," American Airlines spokesman Ross Feinstein said to CNBC on Thursday. "We anticipate that part of any compensation American receives will be eligible for profit sharing for our team."

That would put American in line with Southwest, which has already reached a deal with Boeing for compensation related to the grounding of the MAX.

Sign up for the free daily TPG newsletter for more airline news!

Terms were confidential, but the carrier said it anticipated distributing about $125 million from the settlement to workers through its profit-sharing program.

Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

"Our People have done an incredible job managing through the MAX groundings, while providing the highest levels of Customer Service and one of the best operational performances in our history," Southwest CEO Gary Kelly said in a statement when the deal was announced in December. "On behalf of the Southwest Board of Directors, we are grateful to our Employees for their extraordinary efforts throughout the year and are pleased to share proceeds from our recent agreement with Boeing."

The move by carriers to share some of the compensation with employees comes after work groups have said issues with the MAX have hurt them financially.

Southwest pilots, for example, say reduced schedules at that carrier has given them fewer flights to work, costing the group a collective $100 million, according to The Wall Street Journal.

TPG featured card

4 / 5
Go to review
Rewards rate
1XChoose to earn up to 1X points on rent and mortgage payments with no transaction fee
2XEarn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases
Intro offer
Open Intro bonus
50,000 Bilt Points + Gold Status + $300 of Bilt Cash
Annual fee
$495
Regular APR
26.74 - 34.74% variable
Recommended credit
Open Credit score description
Good Credit, Excellent Credit

Pros

  • Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
  • Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
  • $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
  • $200 Bilt Cash annually
  • Priority Pass membership
  • No foreign transaction fees

Cons

  • Moderate annual fee
  • Designed primarily for members seeking a premium, all-in-one card
  • Earn points on housing with no transaction fee
  • Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
  • 2X points on everyday spend
  • $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
  • $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
  • Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
  • Priority Pass ($469/year value). See Guide to Benefits.
  • Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.