Valentine’s Day could have brought more excitement , as thousands of Delta employees got the equivalent of a month’s pay Wednesday as the carrier sent out its profit-sharing payments.
The Atlanta based carrier revealed it through a press release,
Valentine’s Day is an extra special day for Delta, with employees receiving their share of Delta’s 2023 profit. Delta people are receiving a check for 10.4% of their eligible earnings – representing more than one month’s pay.
The payout marks an important milestone for Delta’s profit-sharing program, bringing the total paid out to employees since its inception in 2007 to $11 billion. Delta continues to lead the industry in profit sharing, with this year’s total greater than the pool of all U.S. peer airlines combined.
The total amount of payment reached to $1.4 billion, a total that will be shared among more than 100,000 employees. The money constitutes 10% of an average Delta worker’s annual salary.
The payout is up 146% from the profit sharing payment of a year earlier, and well above the $108 million for 2021. Noteworthy is, there was no profit sharing for 2020 due to the historical losses due to the battered airtravel during the first year of the pandemic.
The $1.4 billion payout is the second largest profit-sharing amount in Delta’s history, with 2019’s $1.6 billion taking the top spot. It comes after two years of relatively low payouts, with this year’s cash up 150% from 2023.
On this step, Delta further added ,
Sharing success is a foundational component of Delta’s values-driven business model and a core aspect of the company’s culture. Delta created its profit-sharing structure after the turbulent period the airline industry underwent in the early 2000s, as leaders worked to boost employee morale and cultivate a workplace of gratitude and teamwork.
Marking the occasion, Delta CEO Ed Bastian said ,
“Rewarding our people is fundamental to who we are at Delta. It’s always my No. 1 priority to take care of the Delta team, and today is a prime opportunity to recognize their dedication and efforts in 2023,”
“This year’s $1.4 billion payout along with our global annual celebrations represent just one of the ways we’re able to demonstrate our gratitude and love for a well-deserving team.”
The Delta press release also published the city and region wise profit shiring for this year, among a diverse array of people and cultures reflective of Delta’s workforce :
Delta also said that the Profit sharing is just one part of Delta’s employee financial wellness commitment. Delta said to be offering competitive base pay; match up to 6% plus a fixed contribution of 3% to 401(k) retirement savings; monthly Shared Rewards for achieving operational goals; free financial coaching with the ability to earn $1,000 for emergency savings.
Joanne Smith, Delta’s E.V.P. and Chief People Officer said ,
“Delta’s people-first culture has always been core to our business, going back to our founder, C.E. Woolman,”
“An important part of that culture is sharing our successes. This year’s $1.4 billion profit-sharing payment is a direct result of the hard work and persistence shown by Delta people each day.”
According to Delta, it launched its signature emergency savings program with Atlanta-based Operation HOPE and Fidelity in year 2023. This program provides employees with one-on-one financial coaching and a $1,000 rainy day fund contribution from Delta. Since the program started, more than 35,000 Delta employees have participated in the program with Delta contributing $21 million to employee savings accounts.
Loretta Day, a Delta flight attendant based in Atlanta said ,
“What other company do you know of that is giving you free money to make sure you are on top of your financial education?”
“I am a better steward over my finances because of Delta. I have emergency money and am more educated on my finances, investments and stocks.”
Delta is primarily a nonunion company, with only about 20% of its employees being unionized, primarily its 18,500 pilots. The Association of Flight Attendants has been trying to organize its flight attendants, so far without success.
