Delta announces $1.3 billion in profit sharing, $456 million for Atlanta employees (Valentine's day, university)

[citidata18]

This will be an especially huge shot in the arm for commerce in Coweta and Fayette Counties, where the vast majority of Delta's employees live and shop.

https://www.bizjournals.com/atlanta/..._news_headline

Delta Air Lines is paying 80,000 of its employees roughly $1.3 billion in annual profit sharing, including $456 million to Atlanta employees.

It is the airline's second-largest profit sharing pool since it started five years ago, after payout of $1.5 billion in 2016. Employees will receive a bonus equal to 14 percent of their annual pay.

Announcing the results of its profit share total on Valentine's Day has become an annual tradition for Delta, and 2019 is the fifth-consecutive year Delta's profit sharing exceeded $1 billion.

The profit sharing total is formulated from Delta's 2018 pre-tax income of $5.2 billion, which was a $137 million decrease relative to 2017 as the company overcame approximately 90 percent of the $2 billion increase in fuel expense.

Despite higher fuel costs, Delta Air Lines Inc. (NYSE: DAL) reported revenue gains in nearly every sector in the fourth quarter of 2018 and expects the trend to continue in 2019.

“As we move into 2019, we expect to drive double-digit earnings growth through higher revenues, maintaining a cost trajectory below inflation and the modest benefit from lower fuel costs," Delta CEO Ed Bastian said in a press release.

Over the past five years, Delta has paid out more than $6 billion in employee profit-sharing.

In response to Delta paying $456 million to Atlanta employees, Emory University economist Jeff Rosensweig said the overall economic impact in Atlanta will be greater than $1 billion because of the "multiplier effect."


Rosensweig explained the concept:

“In the ‘multiplier effect,’ the increased income earned by people selling goods and services purchased by Delta employees with their profit sharing payouts is, in turn, spent partly on local products,” Rosensweig said. “Then, the people who sell those products will start a third round of spending, and so on.”

Rosensweig said profit sharing guarantees a large portion of it will go back to the communities where Delta employees live and work. The payout in Atlanta will create roughly 4,000 full and part-time jobs outside of Delta, according to a news release

[kagete]

Yes there will be lots of new cars and trucks in the company parking lot on Camp Creek after this weekend.

[cqholt]

And they were complaining about losing a jet fuel subsidy?

[citidata18]

Originally Posted by cqholt

And they were complaining about losing a jet fuel subsidy?

Who is "they?"

Delta never complained about it.

[cqholt]

Originally Posted by citidata18

Who is "they?"

Delta never complained about it.

I don't agree with our conservative legislators punishing Delta because they ended an NRA discount, but from the looks of their profits it had little effect.

[citidata18]

Originally Posted by cqholt

I don't agree with our conservative legislators punishing Delta because they ended an NRA discount, but from the looks of their profits it had little effect.

Right.

So I'm not sure what you meant by "And they were complaining about losing a jet fuel subsidy?" Delta certainly wasn't.

[cqholt]

Originally Posted by kagete

Yes there will be lots of new cars and trucks in the company parking lot on Camp Creek after this weekend.

Let's hope the employees use that windfall to pay off debt, save for kid's post-secondary education, or investment for retirement Spending it on a new car is the worst use of this money, at least spending it at a strip club supports independent, small business owners.

[AnsleyPark]

Originally Posted by cqholt

Let's hope the employees use that windfall to pay off debt, save for kid's post-secondary education, or investment for retirement .

Amen! From what I've noticed, when many folks get a bonus they spend it on something not particularly important and don't save it for those things you mentioned.

[ATL Golfer]

I'm so glad Delta's industry leading and most expensive baggage fees and $200 change fee could be put to such good use. Every time a rep charges me those fees I let them know I'm very happy to contribute to their profit sharing bonus...go out to a nice dinner on me.

They clamped down in the downturn so they could survive. Customers supported them and got them out the mess. Now they do nothing to say thank you except pocket all of the profits vs giving back to the customer. What a great company! And now the CEO is on record as saying he'd like no flights booked with SkyMiles in the future. How do SkyMiles help his bonus?

[Beretta]

WIth that much in profits, Delta could make a huge PR win by reducing some baggage fees or something for the customer base.