As I wrote about earlier, Emirates Airline reported a record $4.7 billion profit for the past financial year. The airline is celebrating this by rewarding employees in a pretty incredible way, which puts profit sharing at other airlines to shame…
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110,000+ Emirates employees get huge bonuses
Emirates has historically offered profit sharing to employees when the airline has a good year. However, there’s no consistent formula to this, and it’s at the discretion of the company’s executives. With the airline having done so well the past financial year, employees are being rewarded in a generous way.
The Dubai-based airline has announced that all employees of the company will be getting a bonus equal to 20 weeks worth of basic salary. Yes, that means all Emirates employees will be getting nearly a 40% bonus on their basic salaries. It’s worth emphasizing that basic salaries aren’t necessarily equal to the total pay, as many flight crews have both basic pay plus an hourly pay.
Historically when Emirates has performed well, the airline has offered employees bonuses equal to several weeks worth of salary. For example, for the 2017-2018 financial year, the airline offered employees bonuses equal to five weeks worth of pay.
However, the airline didn’t do so well in 2018-2019, and then the pandemic happened, so there weren’t many profits to share. For the 2022-2023 financial year, Emirates reported record financial results, and brought back profit sharing, with a massive bonus equal to 24 weeks worth of salary.
Now for the 2023-2024 financial year, we’re seeing profit sharing that’s not quite as big, even though profits increased by around 62%. That’s fair enough, since last year’s bonus was intended to reflect years of there not being bonuses.
I can’t think of any airline that has ever offered employees profit sharing making up such a large percentage of their salary for two years in a row. Here in the United States, Delta has a formula for its profit sharing, and for the past year, Delta’s profit sharing was equal to 10.4% of pay.
This is really great to see from Emirates
Gulf carriers are often vilified for their employment practices. While I think some criticisms are warranted, Emirates usually does a pretty job taking care of employees, and this is a clear reflection of that. Even without a union or collective bargaining agreement, it’s possible for a company to be generous with staff.
For two years in a row now, Emirates employees have received profit sharing equal to nearly 50% of their salary. I’m sure this will do a lot to help morale at the airline, and to ensure employees are invested in the continued success of the airline.
So many Emirates employees live in Dubai, while their families are back home in the country they’re originally from. Often the Emirates staff are bread winners for their whole family, so getting this kind of a bonus will make a material difference in their lives.
Bottom line
Emirates reported a record profit of $4.7 billion, and the airline is celebrating that by offering employees profit sharing that’s equal to 20 weeks of salary. While not quite as big as last year’s bonus worth 24 weeks, this is still a very nice reward that I’m sure employees will be delighted by.
What do you make of Emirates’ massive bonus for employees?
As always with EK, the devil is in the details and their PR Marketing team are working overtime as usual. Basic salaries for EK staff make up only 50-60% of the total salary for many ground staff there, and even less for cabin crew who get a larger percentage of their total pay from flying time. So whilst I am sure the bonus is nice, it certainly should not be portrayed as amazing as their...
As always with EK, the devil is in the details and their PR Marketing team are working overtime as usual. Basic salaries for EK staff make up only 50-60% of the total salary for many ground staff there, and even less for cabin crew who get a larger percentage of their total pay from flying time. So whilst I am sure the bonus is nice, it certainly should not be portrayed as amazing as their PR team would have everyone believe. This is the same company who has tried to ram 2-3-2 Business class on the 777 down our throats as "luxurious" for the last 15 years remember...
I believe EVA Airways have paid employees 2023 year-end bonuses equal to six months salary. If concerned both employees at the airline and its subsidiaries. Employees are also supposed to receive a mid-year bonus this year.
Eligible Singapore Airlines employees have received a bonus of 6.65 months salary in 2023.
For Delta employees shall suffice to feel grateful for working for a premium airline...
I wonder how bad are the tax implications for such a large lump-sum received in any given tax year.
Zero implications as no income tax in Dubai.
Whatever, I really enjoy flying EK as well! So far the best first class product!
US employees could never work under the "strict" conditions that allow for a company to make this much profit, so that they are ABLE to share that much profit with their employees. Y'all union employees want no phones on planes? Written up for infractions such as being late or not serving pre-departure bevs? Uniforms held to a HIGH standard? It takes the entire team of employees being under the thumb of management (so to speak)...
US employees could never work under the "strict" conditions that allow for a company to make this much profit, so that they are ABLE to share that much profit with their employees. Y'all union employees want no phones on planes? Written up for infractions such as being late or not serving pre-departure bevs? Uniforms held to a HIGH standard? It takes the entire team of employees being under the thumb of management (so to speak) for an airline to make Billions and then be able to share Billions back as a bonus. If IS employees de-unionized and then went into a new agreement with their employers that "if the company doesn't waste and lose money, y'all get mega bonuses" it might work. But everyone in the US wants the Cake upfront and the Meal and a refill of the sugary drink, oh and "nice bosses". These US employees couldn't make it a year working for ANY of ME3 airlines and I'll bet money on that statement. No employer can pay top pay and promise bonuses like this with lackluster employees.
Unions are there not to prevent members from being exploited by management, it's there to exploit the management.
Where on earth can you successfully demand to work less but get paid more.
“Unions are there not to prevent members from being exploited by management, it's there to exploit the management.”
“POOR, POOR MEMBERS OF MANAGEMENT, BEING TAKEN ADVANTAGE OF AND EXPLOITED SO HORRIBLY!” said nobody ever, except for Eskimo.
airline executives should take a look at tis article. Notably Alaska Air. If you had decent, responsible and caring executives running airline you would not have the chaos that is circulating regarding employees at the airline.
Fun fact: when I was young I applied to work at Alaska Air. I accidentally checked "yes" to "do you smoke cigarettes" and their ATS flagged that I would remain unemployable for some number of years.
Certainly odd what we prioritize in the US. Good service? Staff that cares? Professionalism? Nah, it's fine. But oddly-specific ethical values? Above all else!
Its nice to see a company reward the staff with large bonuses
if you think the labor practices are bad in the Gulf countries wait until you see how great the working conditions are in Pakistan, India, or Bangladesh were most of the workers come from. You will then know why all these workers are happy to go to Dubai for work
And yeah why are some whining about the human rights problems in dubai??? WTF is with these people if you say that workers are happy to leave these following countries that you listed on there?
This is great and hope it does boost morale but at the same time, I still remember how the airline laid off thousands of employees by email back in 2020.