This practice, foundational to the airline since 2007, also has a cascading multiplier effect in the communities where Delta people live, work and serve. This year’s payout totals more than $550 million – about 5.5% of each employee’s 2022 pre-tax earnings – representing one of the most generous profit-sharing programs in the U.S.
The annual payout is part of a substantive one-two punch to boost employees’ purchasing power, coming on the heels of Ed’s announcement regarding a 5% pay increase April 1 for eligible employees.
“When we deliver for our customers, their loyalty drives continued reinvestment in you and our business,” Bastian wrote in a memo to all Delta employees announcing the pay increase. “This virtuous circle is powered by our 90,000 people.”
That investment doesn’t stop with Delta people, however. One-time payments tend to be saved, but annual payments like Delta’s “give employees the confidence to spend, to enhance their lifestyles or to make a special purchase,” said Professor Jeff Rosensweig, Director of Emory University’s Robson Program for Business, Public Policy, and Government.
Some of that money will be spent locally, allowing small businesses to expand; that expansion enables a second round of spending, which then further fuels local business growth that can then boost a third round of spending.
Rosensweig predicted that most people would strike a balance between spending their payout and paying down debt or saving money for a rainy day. (Indeed, Delta people can contribute some or all of their profit-sharing payment to their 401(k) or to an emergency savings fund launched this year, which also allows them to earn up to an additional $1,000 in savings funds from Delta.)
Tags: Deta Air Lines
