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Delta Air Lines Announces 5% Raise For All Staff

SimpleFlying 2/7/2023 Jonathan E. Hendry
© Provided by SimpleFlying

Delta Air Lines employees are due to receive a 5% pay increase across the board from April 1st. The raise will affect the airline's employees worldwide, from flight attendants to ground personnel. In addition, employees will receive an additional payment on February 14th as part of the airline's profit-sharing initiative.

All employees at Delta Air Lines not otherwise covered by industry, government, or collective bargaining agreements will receive the raise. The airline confirmed the pay increase this week. It will be a light increase on the last system-wide bump of 4% in May of 2022. In an internal memo seen by Simple Flying, Delta CEO Ed Bastian confirmed the pay rise and complimented the hard work and resilience of the 90,000 Delta employees across the globe:

"With the pandemic now behind us, we are focused on elevating our world-class performance and service to widen the gap with our competitors. When we deliver for our customers, their loyalty drives continued reinvestment in you and our business.

"This well-earned increase is a direct result of your efforts. I can’t thank you enough you for your continued commitment and the care you demonstrate to each other, our customers, and the communities we serve."

Delta has raised employee pay almost every year for the last 15 years, the notable exception being years affected by the COVID-19 pandemic. The airline has delivered 12 base pay increases over the last 15 years, equaling an average of 80% increase in base pay.

The airline's pilots are separately voting on a new contract which could see a pay increase of 30% over the next several years

Profit-sharing payout this month

The announcement comes on top of a $563 million profit-sharing payment based on the company's strong performance in 2022. The airline ended the year with an adjusted operating revenue just 2% shy of its 2019 number, resulting in the seventh-strongest year in the airline's history. The payout will occur on February 14th, Valentine's Day in many cultures, and Employee Appreciation Day at Delta. The airline's employees will each receive a payment equalling 5.57% of their eligible 2022 earnings.

The scheme is funded by 10% of the airline's first $2.5 billion of profits and 20% of profits in excess of $2.5 billion. The total amount is then divided by the earnings of all eligible employees to find the percentage given to each employee. In 2019, Delta's last full year of profits, employees split a pot worth $1.6 billion. That number translated to a 16.6% bonus on employee earnings, equivalent to almost two months of additional pay for each employee.

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In 2021, the company only posted a second-half profit and issued a special profit-sharing of around $100 million accordingly, which was dispersed as a fixed payment based on when employees joined the organization. At a recent earnings call, Delta CEO Ed Bastian expressed his excitement to share the company's profits with its most-valued assets:

"Delta people rose to the challenges of 2022, delivering industry-leading operational reliability and financial performance, and I'm looking forward to recognizing their achievements."

The airline is continuing to grow its workforce. The carrier announced in December it is looking to add 4,000 to 6,000 new cabin crew members this year. This amount comes on top of the 4,300 new flight attendants added last year, a record for the airline.

  • Delta Air Lines
    Airline Type: Full Service Carrier
    Hub(s): Boston Logan International Airport, Detroit Metropolitan Wayne County Airport, Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, Minneapolis-St. Paul International Airport, New York JFK Airport, LaGuardia Airport, Salt Lake City International Airport, Seattle-Tacoma International Airport
    Year Founded: 1929
    Alliance: SkyTeam
    CEO: Ed Bastian
    Country: United States
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