Delta is splitting $1.6 billion in 2019 profit with its 90,000 employees, amounting to about two months of extra pay. Talk about a great year!
The bonus amounts to about 16.6% of employee base pay, approximately two month’s salary. $1.6 billion sets a new record, surpassing records of $1.3 billion in 2018 and $1.1. billion in 2017.
Announcing the news on LinkedIn, Delta CEO Ed Bastian said:
“Delta would be nothing without our 90,000 people. They deserve all the credit.”
In a later statement issued by Delta, Bastian elaborated:
“2019 was a truly outstanding year on all fronts — the best in Delta’s history operationally, financially and for our customers. Our people, and their commitment to bringing best-in-class travel experiences to our 200 million customers, are the foundation for our success. I’m pleased to recognize their outstanding performance with a record $1.6 billion in profit sharing for 2019. As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results, including earnings per share of $6.75 to $7.75.”
Employees can expect the bonus checks on Valentine’s Day.
CONCLUSION
Christmas came late for the workers of Delta, with a huge bonus on the way. Whatever the cause and effect, Delta is on an upward spiral: the profit sharing fosters loyal employees who show their love for their company by offering excellent service. That in turns draws more customers to Delta, increasing profit. It’s a beautiful mechanism.
Congrats to the workers of Delta on another great year and congrats to Bastian and the Delta leadership. I don’t think we’ve ever seen an airline run this well overall.
image: Delta
“And to further commemorate this achievement we will do a series of flyovers across America and dump fuel over urban areas.”
After year of raising fares and devaluing their frequent flyer program, Delta has raked in so much profit that they can now give free fuel to the public.
Half taken from my SkyMiles value.
Amazing what charging for a few bags and seats can add up to… :-O
United employees get…a set of steak knives
AA employees…you’re fired
Haven’t flown delta in many years. So none of it was from me.
I feel good about that.
There are many reasons why Delta consistently has the highest employee AND customer satisfaction of the US Big Three, but this is a big one.
While as someone in the Miles & Poonts game, Delta is atrocious for their redemption rates….as a cash paying customer, I don’t know why anyone would fly an airline other than delta. They have great on time performance, great customer service, and great IRROPS service (which for me is the most important).
And I love the idea of sharing profits with the employees. I wish more corporations would take note.
Style point – profit sharing isn’t a “gift.”
This is great news for employees. You can thank flyers out of MSP who always have to pay way more for flights than anywhere else, thanks to the old Northwest fortress model. We’re subsidizing other cities…
Amusing to see AA ask employees to do more with little value. Sure they get a paycheck, but DL employees work hard to help the company succeed since they know they’ll get a large payout!
I’m VERY glad i re-read the article and noticed that I mistakenly read it as 10.6% and not 16.6% before I posted my EXTREMELY snarky comment about 10.6% not being approximately 2 months salary. 🙂 Your math checks out, lol. Also, this font makes it hard to distinguish between a 6 and 0.