American Flight Attendants Score Big with 11% Profit Sharing

Profit Sharing Details

American flight attendants are set to receive a significant boost in their profit sharing arrangements. The new profit sharing plan, which differs slightly by work group, will see flight attendants receiving increased profit sharing of 10% of the first $25 billion in pre-tax profits and 20% above that amount.

401(k) Contributions

In addition to the increased profit sharing, American Airlines is also committing to increased contributions to its employees' 401(k) plans. The company will contribute 11% of eligible employees' salaries to their 401(k) accounts, up from the current 5%. This increase will further enhance the retirement savings of American Airlines employees.

What is the American Airlines Profit Sharing Plan?

The American Airlines profit sharing plan is a retirement savings plan that rewards eligible employees for the company's financial performance. The plan is funded by American Airlines and is distributed to employees based on their years of service, salary, and the company's profitability.

On average, the annual bonus for flight attendants under the previous profit sharing plan was $1,200. The average profit sharing contribution was $500. Fight attendants at American Airlines have reported total profit sharing payments of over $1 billion over the past five years.