American Airlines CEO Robert Isom has announced a significant wage increase of 17% for flight attendants as contract talks with the Association of Professional Flight Attendants (APFA) continue without a resolution. The announcement comes amidst the looming possibility of a strike if the two parties fail to reach an agreement with the help of federal mediators.

The airline and the APFA have been struggling to reach a new contract agreement, with major differences in key areas, particularly regarding pay. Flight attendants have not received contract raises since before the COVID-19 pandemic, making the issue of wages a central point of contention.

In a video message to the flight attendants, Isom acknowledged that progress had been made in certain areas but emphasized that there was still a substantial amount of work to be done. He outlined the proposal, which includes an immediate 17% wage increase and a new formula for profit sharing, offering increased pay for all flight attendants without requiring any concessions from the union.

The APFA board is set to discuss the proposal later today, according to Julie Hedrick, the union's national president. Hedrick stressed that while the immediate wage increase is significant, the focus should be on securing a long-term agreement with the flight attendants rather than a short-term fix.

To prepare for any potential strike, the union has established a "strike command center," equipped with dedicated phone lines and resources to address the concerns of cabin crew members.

While airline pilots across the U.S. largely secured new labor deals last year, flight attendants at American Airlines, United Airlines, and Alaska Airlines are still engaged in negotiations. Last month, a group of over 160 bipartisan House representatives wrote to the National Mediation Board, urging it to assist in finalizing agreements between the airlines and flight attendants.

If the two parties fail to reach a deal, the release of federal mediators would be triggered, a process that could take several weeks. Strikes among airline employees are rare, with the last instance occurring in 2010 among Spirit Airlines pilots.

It remains to be seen whether the immediate wage increase will bridge the gap between American Airlines and the flight attendants' union. The upcoming meeting with federal mediators is seen as a "last-ditch" effort to reach a mutually beneficial agreement and avoid any disruptions in flight operations.