By Nathalie Voit

Leading U.S. air carrier American Airlines is offering its pilots a 17% salary hike as part of a new deal reached with the help of its pilots’ union on June 30, CNBC reported.

According to an internal video obtained by CNBC, the tentative proposal includes a 6% premium at signing, followed by 5% increases at the start of 2023 and 2024.

American Airlines CEO Robert Isom said the agreement was reached on Thursday once details of United Airlines’ new contract proposal were made public.

“United put forth industry-leading pay, and we matched that for our team,” the CEO said in the video message Thursday, according to CNBC.

Isom said the airline is also considering pay increases for its training program and a 50% bonus on reassignment, also available for reserve crews. If the proposal is ratified by Sept. 30, Isom said pilots might be awarded retroactive pay.

The Allied Pilots Association (APA), the union representing American Airlines pilots, is currently reviewing the deal.

The news follows United Airlines’ decision to institute a 14.5% pay hike for its pilots. With a proposal announced on June 24, United was the first major U.S. air carrier since the start of the COVID-19 pandemic to negotiate a new contract agreement to raise pilot pay.

Currently, three other major air carriers are in contract negotiations: Southwest Airlines, Alaska Airlines, and Delta Air Lines.

American Airlines counts 15,000 pilots among its ranks.