As much as we might rag on Delta for its SkyMiles program and largely outdated fleet, you’ve gotta give the airline credit for how much it rewards employees for their shared success.
In this post:
Delta employees get 10% profit sharing for 2024
Since 2007, Delta has had the most generous profit sharing program in the airline industry. On Valentine’s Day (which Delta calls Profit Sharing Day) every year, employees get their profit sharing check, reflecting the carrier’s results for the year.
For 2024, Delta employees have been rewarded with 10% of their eligible earnings, representing roughly five weeks worth of pay. For some frontline employees, this might amount to a few thousand dollars, while for some pilots, it might amount to tens of thousands of dollars.
With this latest profit sharing payment, Delta’s profit sharing scheme since 2007 has now paid out over $12 billion. In most years, Delta’s profit sharing is greater than the pool of all other US airlines combined. Over the past 10 years, the airline has shared over $1 billion in profits annually seven times.
This is no small chunk of change — Delta’s total profits for 2024 were around $5 billion, so this year’s payment is equal to roughly 30% of the profits. For what it’s worth, profit sharing in 2023 and 2024 was nearly identical, as the profit sharing “pool” for 2023 was also $1.4 billion.
As you’d expect, this profit sharing has some significant implications for the economies with the most Delta employees, as hundreds of millions of dollars will be distributed in Georgia, and significant amounts will also be distributed in New York, Michigan, California, Washington, Utah, and beyond.
While this profit sharing is better than you’ll find at all other US airlines, it’s worth noting some pretty incredible profit sharing we’ve seen at foreign carriers in recent times. Based on 2023 profits, we saw Singapore Airlines reward employees with a 32-week salary bonus, and we saw Emirates reward employees with a 20-week salary bonus.
This profit sharing is part of Delta’s recipe for success
Delta has long had a superior corporate culture to American and United, and the profit sharing scheme has been a large part of that success. Employees are a lot more invested in the success of the airline than at other carriers.
Now, I do think Delta has lost some of its edge when it comes to service since the start of the pandemic, given the percent of Delta’s workforce that’s new. But still, the airline is a cut above the rest when it comes to taking care of and showing appreciation for customers.
Delta’s generous profit sharing scheme tends to ruffle some feathers among employees at other airlines. For example, in 2023, American flight attendants were rewarded with 1.1% profit sharing, which was a far cry from what Delta employees received (unfortunately American just isn’t as profitable).
Delta’s motives for its profit sharing arrangement also go beyond just having a good corporate culture. The airline has the highest percentage of non-unionized employees of any major airline in the US, with flight attendants not being unionized.
So the airline not only proactively gives flight attendants raises, but also has generous profit sharing to create an overall rewarding compensation structure for employees. While unions can also try to negotiate profit sharing, it’s hard to imagine employees will come out ahead at other carriers compared to Delta.
Bottom line
Delta employees will be receiving $1.4 billion in profit sharing for 2024, equal to roughly 10% of their eligible annual pay, or around five weeks of pay. Delta is in a league of its own on that front, as the airline pays more in profit sharing than all other US airlines. While I have many criticisms of Delta, the carrier’s relationship with its employees isn’t among them, and it’s something the company deserves credit for.
Delta expects profits to be even bigger in 2025, so if that ends up being the case, employees can look forward to even more profit sharing.
What do you make of Delta’s profit sharing scheme?
Why is DC only coming out at ~$3M. Since I live in the area, I want a do over. Check those figures please... :-)
the economic impact of the profit sharing is related to the number of DL employees in those areas.
While DL is the 2nd largest airline at DCA, it does not have crew bases or a res office in the area so this is simply a reflection of the number of airport employees.
Obviously (at least according to one participant on this blog) Delta is the world's only PERFECT airline. LOL
I have never used the word "perfect" to describe any airline - but you have.
It is pretty certain that DL will be the most profitable US airline for 2024 and also have the best operational reliability metrics of the big 3. And higher customer service metrics than AA or UA.
Perfect, no. better than competitors, yes.
and this may be the understatement of the Year: Delta’s generous profit sharing scheme tends to ruffle some feathers among employees at other airlines.
gotta love that this article is incredibly deferential/complimentary to Delta, yet certain individuals still have to pick it apart/have an issue. actual brain worms lmao
@ Harold -- Hah, yeah, even if I have something nice to say, he still has to argue...
Ben needed some Friday activity.
I am here to fact check and bring logic and truth to the discussion
Ben Schlappig OMAAT
January 10, 2025, 8:43 am
@ Tim Dunn -- You understand that Emirates flight attendants have their housing paid for, right? Plus their transportation to and from the airport? Plus they don't pay income taxes?
But anyway, this is all a tangent. I'm not sure why you had to do an Emirates and Delta lifestyle comparison.
That's impressive. Congrats to the employees.
Delta employee total compensation is some of, if not the highest in the world. I can assure you that SQ and EK's "average employee" would love to have the TOTAL compensation that DL employees receive.
Dated fleet? seriously? 2/3 of the fleet (over 650 aircraft) and growing with high speed, free Wifi and over 800 with AVOD. And UAL's average fleet age is older than DAL's - a fact Ben knows full well. Delta used...
Delta employee total compensation is some of, if not the highest in the world. I can assure you that SQ and EK's "average employee" would love to have the TOTAL compensation that DL employees receive.
Dated fleet? seriously? 2/3 of the fleet (over 650 aircraft) and growing with high speed, free Wifi and over 800 with AVOD. And UAL's average fleet age is older than DAL's - a fact Ben knows full well. Delta used half of its 2024 deliveries to retire older aircraft for the highest number of aircraft retirements among the big 3.
oh...8% of DAL's revenue came from loyalty program award redemptions.
Have you normalized for cost of living?
@ Tim Dunn -- You understand that Emirates flight attendants have their housing paid for, right? Plus their transportation to and from the airport? Plus they don't pay income taxes?
Sure, would they like the cash that Delta flight attendants make? Of course, who doesn't want more money in absolute terms! But I can guarantee that you most Emirates flight attendants are in a better ongoing financial situation than most Delta flight attendants, at...
@ Tim Dunn -- You understand that Emirates flight attendants have their housing paid for, right? Plus their transportation to and from the airport? Plus they don't pay income taxes?
Sure, would they like the cash that Delta flight attendants make? Of course, who doesn't want more money in absolute terms! But I can guarantee that you most Emirates flight attendants are in a better ongoing financial situation than most Delta flight attendants, at least when comparing overall expenses and cost of living.
no, Ben, when a company has to import workers from all over the world because people don't really want to live in those countries, no, they are not doing better. EK and the ME carriers simply have to pay to staff their airline; you certainly realize that is the model that the Middle East as a whole uses. The big difference with Saudi Arabia is that it, like Egypt, has a large number of local...
no, Ben, when a company has to import workers from all over the world because people don't really want to live in those countries, no, they are not doing better. EK and the ME carriers simply have to pay to staff their airline; you certainly realize that is the model that the Middle East as a whole uses. The big difference with Saudi Arabia is that it, like Egypt, has a large number of local workers so will not need to import workers as the ME 3 do.
Doing better is making a good salary where you want to live. The US might or might not have the highest quality of life in the world but Delta, and nearly all other US-based US airline employees live in the United States.
@ Tim Dunn -- You're taking a very narrow, western-centric view of the world. Not everyone is American. Emirates has cabin crew from a lot of countries where living in Dubai is a huge upgrade over their home countries. Please don't pretend that everyone working in Dubai is miserable living there.
But anyway, this is all a tangent. I'm not sure why you had to do an Emirates and Delta lifestyle comparison.
no, it is not western centric at all. Company provided living expenses in a country that the employee does not live in or would live it absent their job is not western centric.
It simply says that DL (and virtually all other US and EU carrier employees as well as in many other countries) are paid salaries for which THEY CHOOSE where they want to live.
Of course it is a tangent but...
no, it is not western centric at all. Company provided living expenses in a country that the employee does not live in or would live it absent their job is not western centric.
It simply says that DL (and virtually all other US and EU carrier employees as well as in many other countries) are paid salaries for which THEY CHOOSE where they want to live.
Of course it is a tangent but you brought it up. You seriously don't realize that you, not me, inserted Emirates into the discussion?
Ben Schlappig OMAAT
January 10, 2025, 8:43 am
@ Tim Dunn -- You understand that Emirates flight attendants have their housing paid for, right? Plus their transportation to and from the airport? Plus they don't pay income taxes?
@ Tim Dunn -- A large percentage of Delta flight attendants commute, and don't live where they are based, so that argument doesn't hold up.
And just as I acknowledged that Delta's profit sharing is way more than at other US airlines, I also provided some other international comparisons, to provide examples of some other airlines that have been doing a great job with profit sharing. Other airlines can be doing good things for employees...
@ Tim Dunn -- A large percentage of Delta flight attendants commute, and don't live where they are based, so that argument doesn't hold up.
And just as I acknowledged that Delta's profit sharing is way more than at other US airlines, I also provided some other international comparisons, to provide examples of some other airlines that have been doing a great job with profit sharing. Other airlines can be doing good things for employees without it taking away from what Delta is doing.
Delta’s widebody fleet isn’t dated. That’s a lazy argument that maybe made sense five years ago but doesn’t hold up these days…. unless all you’re doing is leisure flights out of ATL.
That part.
Yes, Delta still has some old B767s and A320s, but United is flying 777s that turn 30 this year and some A320s and B757s that are even older, so why don't they get the same rep? In fact, I think United's average fleet age is still older than Delta's.
Of course employees commute, sometimes from other countries.
But DL and US airlines do not pay for employees' living expenses in the country where the airline operates - and then have bloggers include those expenses in the total compensation.
I don't disagree that other airlines can do good for their employees; you are the one that made the comparison.
IN case you haven't figured it out, YOU are the one that endlessly makes...
Of course employees commute, sometimes from other countries.
But DL and US airlines do not pay for employees' living expenses in the country where the airline operates - and then have bloggers include those expenses in the total compensation.
I don't disagree that other airlines can do good for their employees; you are the one that made the comparison.
IN case you haven't figured it out, YOU are the one that endlessly makes comparisons which end ups up in a pi89ing match which you and others rarely win because the actual facts ALWAYS come out.
Just wrote about airlines and leave the comparisons aside and you might be surprised that others do the same.
As an outsider, your arguments frankly suck Tim Dunn and I support Ben on this
ghetto,
truth and facts do not change regardless of your or anyone else's opinion.
Housing stipends for doing a job in a location other than your own are not part of an employees regular compensation; it is solely dependent on doing a job in a location other than a person's home.
If you live in CA and your boss wants you to work in FL for a month, you get expense reimbursements which...
ghetto,
truth and facts do not change regardless of your or anyone else's opinion.
Housing stipends for doing a job in a location other than your own are not part of an employees regular compensation; it is solely dependent on doing a job in a location other than a person's home.
If you live in CA and your boss wants you to work in FL for a month, you get expense reimbursements which is not taxable income to you.
Crews work on the same principle. They receive compensation for being away from home.
This isn't about income a person can call their own. It is related to the location where they are assigned to work.
Combining tax-free living expenses simply cannot be compared to taxable income for a citizen in their own country or on income that they earn even outside of their home country.
and, depending on the home country, income earned in the UAE might well be taxable in a person's home country regardless of whether the UAE waives the right to tax that income.
Ben: Living in your employer's housing isn't what it's cracked up to be. In the US we got rid of company towns ages ago (although SpaceX is trying to. bring this back).
Wow. Good comment Ben. I wonder why no one used same logic to chinese iphone/foxconn worker?
They literally have meals and board covered. Their total compensation including social security and housing fund and healthcare is 51rmb an hour. Most of them are savings. Average chinese worker might live “worse quality of life” but at least they don’t live paycheck to paycheck
I don’t think Tim has a great understanding of the Middle East.
Having lived in the Middle East for 15+ years I can assure you that many, many people do want to live in Dubai and the UAE. Is it perfect? No place is. Are some folks living there for the job? Sure but that happens everywhere in the world. If you want to work for Apple you need to live near Cupertino or their...
I don’t think Tim has a great understanding of the Middle East.
Having lived in the Middle East for 15+ years I can assure you that many, many people do want to live in Dubai and the UAE. Is it perfect? No place is. Are some folks living there for the job? Sure but that happens everywhere in the world. If you want to work for Apple you need to live near Cupertino or their other offices.
Saudi is less preferable although that has been changing. However I am not sure that Saudi won’t have to import workers. Education levels are low and there are plenty of migrant workers there even today. Know atleast 15-20 people in Saudi and even more in the Middle East.
Of course lots of people live in the Middle East but the UAE is a place that people come to in order to work. The UAE and most of the wealthy Middle East has been built by foreign labor that heavily sends their earnings back home. and that includes EK. EY and QR use the same model which the cruise ship industry developed decades ago.
Saudi Arabia's population like Egypt's is much larger than the...
Of course lots of people live in the Middle East but the UAE is a place that people come to in order to work. The UAE and most of the wealthy Middle East has been built by foreign labor that heavily sends their earnings back home. and that includes EK. EY and QR use the same model which the cruise ship industry developed decades ago.
Saudi Arabia's population like Egypt's is much larger than the UAE and Qatar and it is precisely because they recognize that they can build the same businesses but do it with their own citizens who need good jobs.
The US airlines use very few foreign workers because US law makes it pretty hard to bring in foreign workers when US citizens can do the job
and US companies do have to provide significant compensation and housing/living expense guarantees if they do grant a foreign worker visa - not unlike what the ME3 airlines do.
The difference is that US airlines do not need to give those types of visas because there are plenty of employees to do the job - so all of the compensation that a US (and many other countries') employees earn is under their control and not for expenses just to keep them in the country.
So this is just a copy and paste from last year. Which leaves me to wonder will it be enough to keep out a union vote? From the complaints to constantly being rerouted on domestic, lack of a clear sick policy, terrible insurance, no pay protection, Delta being strict and policing flight attendants and unclear work rules I’m wondering what the pay increase will be this year to keep out the union. We all know...
So this is just a copy and paste from last year. Which leaves me to wonder will it be enough to keep out a union vote? From the complaints to constantly being rerouted on domestic, lack of a clear sick policy, terrible insurance, no pay protection, Delta being strict and policing flight attendants and unclear work rules I’m wondering what the pay increase will be this year to keep out the union. We all know they just throw money at them and that is the intention to stop a union vote. Will 5% be enough this time? Will they drink the purple juice?
I'm not sure where you are getting your information but none of what you said is true you must be a union advocate. I'm an 11 year Delta employee.
Oh honey you must drink the purple juice. It’s true oh and most profitable airline but still doesn’t pay from check in to debrief.I’m sure you love how cheap Delta is and how much money they are saving when you should be getting paid for every hour you are on duty.ED worshipper :)
Let me see has any union in the US been able to negotiate FA being paid from report to release? I live in a household with an RN that in theory should double what i make and we make about the same. Things require perspective which of course you have none. My total compensation is competitive with any other airline and also with many other industries. I live a very comfortable life I am sorry you are so miserable that you feel the way you do.
As an 11 year Delta employee this comment couldn't be further from the truth. So, i assume you are a union advocate.
It's hilarious how folks who aren't part of unions think that they are these nefarious organizations with dastardly motivations. Most workers in the USA have weekends thanks to unions. Overtime is paid thanks to unions. Workers have legal protections thanks to unions. We have workplace sexual harassment protections thanks to unions. OSHA thanks to unions. Child labor laws. Sick leave. Military leave. Wrongful termination protections....just to name a few things unions have fought for and...
It's hilarious how folks who aren't part of unions think that they are these nefarious organizations with dastardly motivations. Most workers in the USA have weekends thanks to unions. Overtime is paid thanks to unions. Workers have legal protections thanks to unions. We have workplace sexual harassment protections thanks to unions. OSHA thanks to unions. Child labor laws. Sick leave. Military leave. Wrongful termination protections....just to name a few things unions have fought for and won most workers, the majority of whom are not unionized. It's great that Delta employees are seem to be happy working for Delta and that they are the most generous with profit sharing amongst US carriers - these are two big reasons why I'm a Platinum. But part of why Delta does what it does is because it understands happy employees = productivity and happy customers = profits, so it provides compensatory incentives to its employees and thus doesn't have a workforce that feels the need to fight for what is right - they already get it from their employer, a rarity these days.
For the record I don’t believe unions to be a nefarious organization. The question is a very basic one. Is a union able to secure something for me that is measurably better than what I have and the answer is no at least as compared to the other airlines represented by unions. What i do see at other companies represented by union is acrimony and dissatisfaction both with the company and union representing the membership.
10% is...niceish, but nowhere near as generous (79% of salary) as what SQ shared with its employees.
You’re comparing two different metrics (10% of profot vs. 79% of wages). Would assume SQ works out more generous but there’s little point in putting the percentages side-by-side.
@ Ace -- This actually is a direct comparison. Delta employees are getting roughly 30% of total profits, equal to 10% of their wages. So Delta employees get bonuses equal to five weeks worth of their salary, while Singapore Airlines employees get bonuses equal to 32 weeks of their salary.
@Ben,
It was not a direct comparison the way it was originally written.
Would you rather make $35K and receive a 79% bonus or $75K and a 10% bonus?
ACE clearly explained that apples to oranges comparison was being used. You continued to do it. Why? Is it that you do not understand?