Delta Air Lines is spending $1.6 billion on profit sharing, giving employees a bonus of 16.6% of their pay on average.
American Airlines announced their profit sharing. It totals $230 million (including a shot in the arm from a Boeing 737 MAX settlement), equating to about 1.4% of employee pay.
American’s profit sharing is lower for (3) reasons:
- Lower profits – they simply make less money than Delta
- Lower percentage contribution of profit to profit sharing (5% vs 10% at Delta)
- More employees to spread the profit sharing pool across (they do less outsourcing)
CEO Doug Parker has described profit sharing as “not the right way to pay 100,000 employees that don’t have that much impact on the daily profits.”
Delta employees receive over 10 times the profit sharing payout that American Airlines employees will receive – although of course profit sharing isn’t the only component of total compensation.