United Airlines recently revealed its impressive financial performance for 2024, whereby the company reported record revenue and very healthy profits, with an even more positive outlook for 2025.
Contractually, flight attendants are entitled to profit sharing based on a formula. However, many flight attendants are finding themselves quite disappointed. Despite profits for the company being up, profit sharing for flight attendants is down by over 40%.
In this post:
United flight attendants see sharp profit sharing drop
The AFA-CWA, which represents over 25,000 flight attendants at United Airlines, has put out an announcement about the profit sharing that flight attendants will be receiving based on the company’s 2024 performance. Long story short, flight attendants will be receiving profit sharing equal to 5.3% of their eligible pay for the year.
This pales in comparison to the 9.2% profit sharing that they received the year before, and it also pales in comparison to the 10% profit sharing that Delta flight attendants are receiving for 2024 (and also received in 2023).
The union explains that it understands many members may be disappointed by this reduced profit sharing, and that some people count on this to get by:
As we reflect on the recent profit sharing announcement made earlier today we can celebrate the impressive profitability of our airline, which will fund our future industry-leading Contract. Simultaneously, it is normal to feel disappointed regarding the lower percentage of profit sharing this year compared to last year. The financial hardships borne by Flight Attendants cannot be mitigated by profit sharing alone.
As Flight Attendants, many count on this compensation, not as a bonus but as a financial bridge in the midst of a national inflation crisis. It is after all, money we have earned through our dedication to our profession and our commitment to United’s success.
This profit sharing is based on the contractual framework that’s part of the contract that flight attendants have, which was negotiated. Long story short, Delta flight attendants and United flight attendants have very different profit sharing formulas.
In the case of Delta, the airline provides profit sharing based on 10% of the first $2.5 billion in full-year profits, and 20% of profits beyond that. Meanwhile in the case of United, profit sharing is based on 10% of full-year profits up to the profits of the previous year, while it’s 20% of full-year profits beyond the previous year’s results.
Essentially, United saw a huge jump in profitability from 2022 to 2023, and a smaller jump in profitability from 2023 to 2024. As a result, profit sharing is also down considerably.
United flight attendants need a new profit sharing formula
I’ve gotta say, if the goal of profit sharing is to get employees motivated to work in the best interest of the company, then United Airlines’ profit sharing formula really isn’t ideal. Of course I understand the concept of wanting to reward improvements in financial performance rather than just the status quo, but the way that this is set up is really quite demotivating.
I mean, United had an amazing year, and performed considerably better than the previous year, yet there was a massive decrease in profit sharing. For United flight attendants, the ideal situation would be for the airline to alternate between making no profits in one year, and making huge profits in the next year.
It’s quite a contrast to Delta, where employees continue to see huge profit sharing as long as the airline performs well. For that matter, this really doesn’t do much to advocate for unionization, when Delta flight attendants aren’t unionized and get the biggest profit sharing in the industry, while the union at United has negotiated an agreement that sees profit sharing potentially decrease even as profits grow.
I feel bad for United flight attendants. While flight attendants at both American and Delta have received significant pay increases, United flight attendants are still working on a pre-pandemic contract. With the amount of inflation we’ve seen in recent years, many flight attendants struggle to make ends meet.
United management has really been dragging its feet with agreeing to a new contract. Given that United is the last major carrier to be negotiating a new contract, you’d think this would be relatively straightforward, given how pattern bargaining works. But that’s not turning out to be the case.
As part of the new contract, hopefully the union also negotiates a new profit sharing formula. For example, United’s pilots have the same setup that Delta does, where they get 10% of the profits up to $2.5 billion, and 20% of the profits above $2.5 billion.
For many United pilots, their bonus alone will be more than the total annual pay of United flight attendants.
Bottom line
United Airlines flight attendants are disappointed to see that their profit sharing has been reduced from 9.2% to 5.3%, despite the company reporting record results. Unfortunately this can’t really be blamed exclusively on management, since this is the profit sharing formula that the union agreed to.
At American and Delta, profit sharing is based on the absolute profit, and the more money the airline makes, the bigger the bonus. At United, profit sharing factors in the increase in profit compared to the previous year. So once the airline consistently becomes very profitable, it’s not great for profit sharing.
Oh well, United flight attendants are still in a better situation than at American, where flight attendants are getting just 1.1% profit sharing.
What do you make of the profit sharing disappointment among United flight attendants?
Never heard so many people crying about getting free money.
Not only was profit sharing down for F/As, it was also down for Ramp Service Agents as well. Last year (2023), we got 3.3595%. This year (2024), we got 3.1673% (roughly 2.5 weeks of additional pay). United made more money this year, while all the employees suffer without new contracts, low profit sharing. Delta employees get 10% and Alaska just announced, they are getting more than 11%, or roughly 6 weeks of additional pay.
United flight attendants will NEVER get the contract they deserve until they have a new union. One that will fight for what they deserve.
The article seems to imply that the agreed formula resulted in a massive reduction in the bonus amount. A little (like 2 minutes) of research would find the 2025 bonus amount was $681M and 2024 was $584.3M. So the bonus pool was 86% of the prior year. Granted that each FA share may vary based on hours worked, etc. year over year but most FAs will get between 80 and 90% of the prior year's...
The article seems to imply that the agreed formula resulted in a massive reduction in the bonus amount. A little (like 2 minutes) of research would find the 2025 bonus amount was $681M and 2024 was $584.3M. So the bonus pool was 86% of the prior year. Granted that each FA share may vary based on hours worked, etc. year over year but most FAs will get between 80 and 90% of the prior year's bonus --- nothing close to the massive reduction what you would read from the percentages.
Also there is nothing stopping the union negotiating team from having any retroactive increase to the 2024 pay rate would also be applied to the profit sharing computation. That would push the 2024 total amount over 2023.
and again, DL paid twice as much profit sharing as UA did for all of its employees ( $681 million for UA).
DL FAs didn't need retro because DL was the first to raise salaries across the board post-covid.
the AFA can negotiate what they want but, if they don't get everything that DL FAs got and the retro to it, the AFA is giving DL FAs reason to never vote for a union.
and don't argue about all of the supposed "guarantees" that unionized FAs have.
Corey. You are incorrect. The payout was about 45% less than last year.
Be thankful you still have a decent job.
We made lots of money but lots less for you because you did well for us in consecutive years. Thanks for the massive profitability though - Kirby.
Sounds about right.
Standard crappy corporate culture. They reported great earnings with 2025 guidance being their most profitable, oil at relatively low cost atm which is why my airline stocks made so much this quarter. But they ain't about to share it with their staff if they can help it. I remember the huge consulting company I had one worked for giving me a 0.5% raise telling me they can't afford it. 2 weeks later the company reports...
Standard crappy corporate culture. They reported great earnings with 2025 guidance being their most profitable, oil at relatively low cost atm which is why my airline stocks made so much this quarter. But they ain't about to share it with their staff if they can help it. I remember the huge consulting company I had one worked for giving me a 0.5% raise telling me they can't afford it. 2 weeks later the company reports a huge profit and revenue. Smh. I then spelled out for the company with math on a long formal letter on how much business I brought in and my worth to the company and how I was prepared to find employment elsewhere. It took that effort which should not be so but they gave me a big raise and bonus. I left 6 months later telling them exactly that, I should not have to justify my worth in writing when you can clearly see how much money I had made for you.
Currently, United flight attendants are the lowest-paid flight attendants of major airlines. They are years and years behind on updating their contract. this contract is 7 years old. Before COVID-19, before record inflation. Management has no motivation to give them a new contract until they assert themselves which they seem unwilling to do. I would be worried about booking with them this year because at some point the FA work group will need to strike...
Currently, United flight attendants are the lowest-paid flight attendants of major airlines. They are years and years behind on updating their contract. this contract is 7 years old. Before COVID-19, before record inflation. Management has no motivation to give them a new contract until they assert themselves which they seem unwilling to do. I would be worried about booking with them this year because at some point the FA work group will need to strike or CAOS to push the negotiations forward. Earnings look good but they are sitting on a dangerous contract negotiation and the Union group had a 99% strike vote . So it could happen at any time.
No need to feel sorry for people who get exactly what they agreed to.
If you want a bigger share of the profits, buy company stock like any other investor. You can't just keep putting your hand out for more "entitlements" when you're already being paid for your work, and your employment conditions are hardly arduous.
Yeah, the average FA has lots of money spare at the end of the month to throw onto the stock market. Muppet.
They have pension funds, right? What do you think that money is for?
Tell us you know nothing about the industry without telling us. Agree with Ronnie, you’re a muppet.
It sounds like the UA flight attendants are being held to similar profit-sharing triggers as management.
UA is paying HALF of what DL is paying on a system basis for 2024 - a difference of more than $600 million. it isn't just the UA FAs that are coming up short.
Not only does this prove why DL FAs don't need a union and won't vote one in but it also shows that UA's costs will go up. There is no reason why UA FAs should be paid a penny less than their highest competitors.
The DL FAs receive 10% PS this year because of ALPA. In fact, Delta has been paying all employees the same PS formula as the pilot group, based on the negotiations between Delta & ALPA in years past. This is not opinion, it's fact. So DL FAs can thank the unionized pilot group. It's not charity on part of Delta.
United and Scott Kirby don't care lol all they care about is profits. Just yesterday many senior flight attendants at United were telling new hires to switch airlines ASAP because morale has never been lower and it's never been this bad. Many new hires are struggling out of bases like SFO, Washington DC, Boston, San Diego, Honolulu and LAX because we haven't gotten a new contract and it's been nearly 4 years. Many stories of...
United and Scott Kirby don't care lol all they care about is profits. Just yesterday many senior flight attendants at United were telling new hires to switch airlines ASAP because morale has never been lower and it's never been this bad. Many new hires are struggling out of bases like SFO, Washington DC, Boston, San Diego, Honolulu and LAX because we haven't gotten a new contract and it's been nearly 4 years. Many stories of flight attendants living out their cars and United and Scott Kirby aren't doing anything but blaming it on the union.
So what’s embarrassing for United Flight Attendants is AFA Alaska got 11.46% which is higher than Delta and not noted in your article. Yet Alaska brought in less revenue than United so it’s clear how poorly United is treating their flight attendants. United does have the option to change the profit sharing formula they opted not to. It would need to go through the Board of Directors, but it is possible
They are now...
So what’s embarrassing for United Flight Attendants is AFA Alaska got 11.46% which is higher than Delta and not noted in your article. Yet Alaska brought in less revenue than United so it’s clear how poorly United is treating their flight attendants. United does have the option to change the profit sharing formula they opted not to. It would need to go through the Board of Directors, but it is possible
They are now one of the lowest paying airlines as Delta, Southwest, American and soon Alaska pay higher. All because they refuse to give their flight attendants a contract after nearly 4 years.It reflects poorly on United and their leadership and it’s very understandable why the flight attendants are so upset
“United .., performed considerably better than the previous year”
This isn’t true. Their profit was only slightly better than the previous year.
Did you not look at the chart you embedded in your post?
Did you see the stock buy back ?? Profits can be manipulated easily !!
The funny thing is... they pay union dues for people to negotiate this for them. Delta flight attendants get the best of everything just because of the threat of a union.
It is clear that you dot understand the concept:
"I mean, United had an amazing year, and performed considerably better than the previous year, yet there was a massive decrease in profit sharing."
In fact it is because the profits are ***NOT*** considerably higher than the previous year, that profit sharing went down.
The formula incentivizes to do better year after year. You could also claim that 2022 and 2023 were anomalies that led...
It is clear that you dot understand the concept:
"I mean, United had an amazing year, and performed considerably better than the previous year, yet there was a massive decrease in profit sharing."
In fact it is because the profits are ***NOT*** considerably higher than the previous year, that profit sharing went down.
The formula incentivizes to do better year after year. You could also claim that 2022 and 2023 were anomalies that led to higher than expected profit sharing due to the slow recovery from covid.
I'd say it might be a good idea to rework the incentive program if it rewards alternating terrible and good years more than consistently great years.
When it comes to people like Abraham, it's clear that Christianity, Islam, and Judaism have a prophet-sharing arrangement