Delta employees have reason to smile this week. $1.3BN in 2018 profit was distributed across the company’s 86,000 employees. For the average employee, that represented a $16,000 bounty!
Delta’s profit sharing program has returned profits to employees for five years in a row. A handshake or raffle? Nope. More like $16,000 per employee, a 14% bonus on base pay.
Meanwhile, American Airlines shared about $175MN in 2018 profit, representing a 1.4% bonus to employee base pay. United shared $334MN from its 2018 profit, representing a 4% bonus for pilots and 3% bonus for other employees (pilots negotiated a special deal in their contract).
Thus, my headline. Think about receiving almost an extra two months of pay. We’re not talking peanuts or enough money to buy some peanuts. We’re talking about enough to buy cars or make serious home improvements or invest in. The bonus is a symbol of hard work and perseverance…Delta has done so well to create a profitable, dependable machine.
Delta has also announced, like icing on the cake, that it will give each employee an extra paid day off to perform community service. Between April 2019 and March 2020, Delta employees will get one day off as long as they volunteer for a US-based 501(c)(3) or international nonprofit organization.
You could argue that a 1.4% bonus at American or 4% bonus at United are better than no bonus at all. And of course you’d be correct. But I have to imagine that as much as American and United employees will express solidarity with their Delta brethren for profit-sharing and paid vacation, there must be a deep pang of envy this week. We’re only human, after all.
(H/T: The Points Guy / image courtesy of Delta)