On the same day that United Airlines reached a settlement with Dr. David Dao, the passenger recently physically dragged off of one of their overbooked flight,Â Wall Street investors in American Airlines punished the company for increasing the pay of its pilots and flight attendants.
Pending finalized contract negotiations, American Airlines will increase its payment of pilots and flight attendants by a total of nearly $1 billion over the next three years, according to a report by the Associated Press. American Airlines hopes this will quell employee discontent at the fact that their pay tends to be lower than that of employees at competing airlines.
After the plan was announced on Thursday, American Airline Group Inc.â€™s stock dropped by 5.2 percent, reaching $43.98. …
…As Citi analyst Kevin Crissey told clients in a note, the employee pay increases are â€œfrustrating. Labor is being paid first again. Shareholders get leftovers.â€
Torches and pitchforks, I say.