American Airlines reached a tentative agreement with union mechanics to provide more pay earlier this week.
Union officials say workers would get a 6 percent signing bonus, a 3 percent raise effective Wednesday -- and 1.5 percent raises in May 2011 and May 2012.
Mechanics also would also get more holidays and vacation time.
In exchange, Fort Worth-based American would get more flexibility in scheduling workers, including increased production hours.
New hires wouldn't be covered by the company's traditional pension plan. Instead, the company would contribute to their 401(k) retirement accounts.
The deal would cover about 11,500 workers.
American has been in long-running contract talks with pilots, flight attendants and ground workers. Those negotiations are still under way.
American parent AMR has lost more than $4 billion since the start of 2008.