American Airlines reverses course on employee profit-sharing

• American Airlines (NASDAQ:AAL) says it will allow employee profit-sharing in a new  program that will pay 5% of pretax profits to all but management employees based on this year's earnings.
• AAL has not allowed employee profit-sharing in new labor contracts reached since its 2013 merger with US Airways, and has long argued that employees want defined pay increases and certainty in their pay checks.
• CEO Doug Parker says that while the 5% rate is lower than that paid by its rivals, AAL plans to offer higher hourly pay rates than those same peers in contracts being negotiated now and in the future.