As a lot as we’d rag on Delta for its SkyMiles program and largely outdated fleet, you’ve gotta give the airline credit score for a way a lot it rewards workers for his or her shared success.
Delta workers get 10.4% revenue sharing for 2023
Since 2007, Delta has had probably the most beneficiant revenue sharing program within the airline trade. On Valentine’s Day yearly, workers get their revenue sharing examine, reflecting the provider’s outcomes for the yr.
For 2023, Delta workers have been rewarded with 10.4% of their eligible earnings, representing multiple month of pay. For some frontline workers, this would possibly quantity to a couple thousand {dollars}, whereas for some pilots, it’d quantity to tens of hundreds of {dollars}.
With this newest revenue sharing fee, Delta’s revenue sharing scheme since 2007 has now paid out $11 billion. Delta’s revenue sharing this yr is bigger than the pool of all different US airways mixed. Over the previous 10 years, the airline has shared over $1 billion in income yearly seven instances. That is no small chunk of change — Delta’s whole income for 2023 had been $4.6 billion, so this yr’s fee is the same as roughly 30% of the income.
It’s additionally attention-grabbing to see how that $1.4 billion is being distributed geographically, as clearly this has an influence on native economies. The states with the largest revenue sharing are Georgia ($595 million), New York ($185 million), Michigan ($110 million), California ($86 million), Washington ($77 million), and Utah ($76 million). That’s not stunning, given the situation of Delta hubs. It’s attention-grabbing simply how massive Delta’s presence is in Georgia, as practically half of the revenue sharing is in that state.
Right here’s how Delta CEO Ed Bastian describes the most recent revenue sharing funds:
“Rewarding our individuals is key to who we’re at Delta. It’s at all times my No. 1 precedence to maintain the Delta crew, and in the present day is a primary alternative to acknowledge their dedication and efforts in 2023. This yr’s $1.4 billion payout together with our world annual celebrations signify simply one of many methods we’re capable of display our gratitude and love for a well-deserving crew.”
This revenue sharing is a part of Delta’s recipe for achievement
Delta has lengthy had a superior company tradition to American and United, and the revenue sharing scheme has been a big a part of that success. Workers are much more invested within the success of the airline than at different carriers.
Now, I do suppose Delta has misplaced a few of its edge with regards to service because the begin of the pandemic, given the % of Delta’s workforce that’s new. However nonetheless, the airline is a minimize above the remainder with regards to caring for and exhibiting appreciation for patrons.
Delta’s beneficiant revenue sharing scheme tends to ruffle some feathers amongst workers at different airways. For instance, American flight attendants just lately bought 1.1% revenue sharing for 2023, which is a far cry from what Delta workers are getting.
Delta’s motives for its revenue sharing association additionally goes past simply having company tradition. The airline has the very best share of non-unionized workers of any main airline within the US, with flight attendants not being unionized.
So the airline not solely proactively provides flight attendants raises, but additionally has beneficiant revenue sharing to create an total rewarding compensation construction for workers. Whereas unions also can attempt to negotiate revenue sharing, it’s onerous to think about workers will come out forward at different carriers in comparison with Delta.
Backside line
Delta workers needs to be fairly happy this week, as they’ve simply obtained their share of $1.4 billion in revenue sharing, equal to 10.4% of their eligible annual pay. Delta is in a league of its personal on that entrance, because the airline pays extra in revenue sharing than all different US airways mixed. Whereas I’ve many criticisms of Delta, the provider’s relationship with its workers isn’t amongst them, and it’s one thing the corporate deserves credit score for.
What do you make of Delta’s revenue sharing scheme?
