Today is profit sharing day at Delta Air Lines, and in addition to paying out $1.3 billion to employees today (8.9% of salary, or about a month’s worth of pay) the airline has announced that its employees will receive a raise this year.
Delta’s profit sharing exceeds the amounts paid out by the rest of the U.S. airline industry combined and it’s the ninth time they’ve paid out over $1 billion in profit sharing – basically every year since 2014 with a break during the pandemic.
The airline’s employees, like flight attendants, earn more than competitors. Whle they don’t have a union deal, American’s flight attendant union contract tried to mirror what Delta offers but American doesn’t make money. 10% profit sharing of near-zero at American is near-zero, while at Delta is really material.
At United Airlines, employees go years without raises. The following union contracts are currently ‘amendable’ (meaning they’ve expired, and employees keep the same pay without raises until there’s a new contract in place):
- Flight attendants (AFA-CWA) — amendable since August 2021.
- Dispatchers (PAFCA) — amendable December 2024.
- Aviation maintenance technicians (Teamsters) — amendable December 5, 2024.
- Passenger service, fleet service, storekeepers, fleet technical instructors (IAM District 41) — amendable May 1, 2025
Meanwhile, non-union Delta employees generally get raises each year (in fairness, there was a break in this during the pandemic, but Delta didn’t furlough anyone while American and United furloughed more employees than any other airlines in history had previously). They’re able to drive a revenue premium in part because their employees are better, they have a better culture.
The airline has added monthly bonuses (‘shared rewards’) for hitting operational goals, $1,000 payouts for going through personal finance education, and the airline was the first to introduce boarding pay for flight attendants and did it as a true add-on to existing wages (in contrast, at American, flight attendant leaders explained that when they got this provision in their new contract it traded off with wages).
The best workplaces are often non-unionized.
The DL pilots and dispatchers are unionized and UA’s unionized employees are getting almost as much in profit sharing. Good management is far more causal WRT profitability than unionization.
When you treat your employees better (of which, compensation is just one part), you attract and retain better employees. Delta is to the airline industry what Costco is to the retail industry (especially in comparison to Target and WallyWorld). It’s too bad that Southwest used to operate this way, and then just pissed it all away to line the pockets of Elliott Investments.
One of the best things about a non-union environment is that you can pay high performing people well. Unlike a union shop where everyone is considered to be of equal worth, even if they’re a (union protected) underperformed. Another reason we choose Delta first.
on this, rebel and I agree.
DL is simply a better run company and airline. Their unionized and non-union employees both win.
It is most notable that WN used to pay very high profit sharing but it was restricted to retirement accounts. DL’s profit sharing is payable in cash but employees can put it in their retirement accounts.
Boat, car, remodeling and vacation sales always peak in DL hubs in Feb.
AA not only doesn’t provide profit sharing because they make near zero profits but UA’s profits will be reduced by hundreds of millions if not billions per year when their employees quit drinking koolaid and demand to be paid DL-comparable wages.
WN is clawing its way back from the abyss but DL is likely to lead not just airlines but all of corporate America in the size of its profit sharing for years to come.
to amplify on rebel’s comments. UA’s unionized employees may be getting about higher profit sharing than any other non-DL airline, their wages far lag DL’s so their total compensation is much lower.
The notion that unions have helped keep UA employee compensation comparable to DL is simply not supported by facts
and Lance,
DL’s non-union mechanics allow DL to pursue valuable contract work such as engine overhaul rights with all three of the western engine manufacturers that DL can do because it hires retired DL mechanics on a contract basis which unions don’t allow.
All DL employees benefit from the extra revenue from these MRO contracts which have similar examples elsewhere in DL’s workforce.
DL simply has fewer restrictions while its employees benefit and make more as a result of being largely non-union.
Not sure what the issue is.
Employees at one company are always better/worse off than at another company. This is free market/capitalism.
I’m the consumer being presented with a gradually worsening product at constantly increasing pricing. I make my choice of airline and so can employees.
2025 PS: DL:8.9%, UA:7.1%
@ Tim — MUCH lower? Exaggerate much?