American Airlines Group Inc. AAL, -1.53% and the union representing its pilots have reached a preliminary labor contract, the union said Friday. Allied Pilots Association said that next steps include presenting the preliminary agreement to its board. Earlier this month, the pilots had voted to authorize a strike if necessary. An agreement between American and its pilots would follow Delta Air Lines Inc.’s DAL, -0.84% contract with Delta pilots, who are represented by a different union, ratified in March. That contract raised pay by 34% through 2026 and also offered job protections and improvements to benefits and vacations. Shares of American Airlines were caught in the downdraft for equity markets on Friday. So far this year, the stock has gained around 16%, which compares with a 9% advance for the S&P 500 index. SPX, -0.14%
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