American Airlines flight attendants will receive a 1.6 percent wage increase after the union sought a more than 8 percent pay hike.
An arbitration panel Tuesday agreed on the lower figure for American's more than 25,000 workers represented by the Association of Professional Flight Attendants.
Fort Worth-based American and the union disagreed over the wage increase as part of a pay adjustment negotiated in the 2014 collective bargaining agreement. The matter involved contract negotiations related to the US Airways merger with American.
AFPA President Bob Ross calls the 1.6 percent pay raise as "insulting."
American says flight attendants, since last April, have seen a 9.6 percent increase in pay, including Tuesday's arbitration ruling. Figures show American flight attendants in 2015 earned an average annual income of nearly $49,000.