PSA Airlines Pilots Ratify Contract Extension and Pay Raises Through 2030

Pilots at PSA Airlines, represented by the Air Line Pilots Association, International (ALPA), have overwhelmingly ratified Letter of Agreement (LOA) 40, formalising a two-year contract extension that locks in structural pay increases and comprehensive work-rule enhancements through April 1, 2030. The agreement establishes vital career certainty for approximately 2,260 professional aviators flying for the wholly owned regional subsidiary of American Airlines Group.

The extension prolongs the current collective bargaining agreement, which was previously scheduled to become amendable on April 1, 2028. Negotiators for the union and airline management drafted LOA 40 to replace temporary compensation incentives with permanent, contractually protected wage scales while improving day-to-day quality of life for line pilots and reserve crews operating across the American Eagle regional network.

Protecting Pilot Earnings and Scheduled Pay Increases

A primary objective of union leadership during negotiations was safeguarding pilot compensation amid shifting hiring patterns across the broader commercial airline sector. Under the terms of LOA 40, existing pilot wage rates will remain in place through May 31, 2027. Beginning June 1, 2027, the first of three consecutive rounds of contractual wage increases will take effect across all longevity steps for captains and first officers.

Subsequent pay increases will roll out on June 1, 2028, and June 1, 2029, guaranteeing steady earnings growth through the end of the contract term. Crucially, the agreement converts the airline's former temporary "pilot supply premium" into permanent base contractual compensation, ensuring that regional flight crews do not face pay reductions as mainline airline attrition stabilizes across the industry.

"When we asked our pilots what mattered most, the answer was clear: Protect our pay. This agreement does that," said Capt. Chris Sabia, Master Executive Council Chair of the PSA unit of ALPA. "It gives our pilots and their families real certainty about the next several years so they can plan their lives and careers here."

Reserve Reform and Scheduling Predictability

Beyond wage rate adjustments, LOA 40 introduces significant structural improvements to pilot scheduling, rest provisions, and reserve duty rules. The agreement completely eliminates the onerous 24-hour Long Call reserve status, replacing it with standardized long-call reserve lines that guarantee a 12-hour minimum call-out window across every operational crew base. This modification provides reserve pilots with predictable rest opportunities and ample transit preparation before reporting for flight duty.

The contract also overhauls open time and reserve assignment transparency. Pilots will benefit from First Out and Last Out assignment preference bidding integrated directly into the FLICA crew scheduling interface, establishing clear seniority transparency when scheduling coordinators assign unassigned flying. Additionally, the agreement sets definitive assignment rules for ready reserve pilots, eliminating arbitrary standby scheduling.

Streamlining the Collective Bargaining Agreement

The ratified package also establishes updated compensation protections for flight instructors, line check airmen, and check airmen examiners. Pilots serving as line check airmen (LCAs), proficiency check airmen (PCAs), and aircrew program designees (APDs) appointed after March 31, 2028, will transition to a revised compensation tier. Meanwhile, delayed flow-through pay protections for pilots awaiting transition to American Airlines mainline cockpits will remain active through March 31, 2028.

Furthermore, holiday flight duty will maintain premium remuneration at 200 percent of standard hourly rates with a four-hour daily minimum guarantee, while existing "Red Flag Day" premium provisions will conclude on February 1, 2027. As part of the ratification, union and company negotiators agreed to consolidate dozens of historical letters of agreement and memoranda of understanding into one unified, modern collective bargaining agreement, simplifying contract administration and grievance resolutions across PSA's Bombardier CRJ700 and CRJ900 operations.