Shares of American Airlines Group Inc. AAL fell 0.6% in premarket trading Monday, after the air carrier’s pilots voted “overwhelmingly” in favor of authorizing a strike. The Allied Pilots Association (APA) union, which represents 15,000 American Airlines pilots, said with more than 96% of the APA membership participating, more than 99% voted in favor of authorizing a strike. “We will strike if necessary to secure the industry-leading contract that our pilots have earned and deserve – a contract that will position American Airlines for success,” said APA President Capt. Ed Sicher. ““Fortunately, there is an alternative. By embracing the win-win scheduling and work rule improvements APA has presented at the bargaining table, management can take steps to improve the airline’s operational reliability and efficiency.” In March, American Airlines’ Chief Executive Officer Robert Isom said the carrier was ready to give pilots raises and higher retirement contributions what would average 40% over four years, which matched what Delta Air Lines Inc. DAL pilots had approved. American’s stock has dropped 18.3% over the past three months through Friday, while the U.S. Global Jets exchange-traded fund JETS has shed 11.4% and the S&P 500 SPX has edged up 1.2%.
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