Delta to Pay $264 Million in Profit Sharing to Employees
Feb 13, 2012
ATLANTA, Feb. 13, 2012 /PRNewswire/ –?Delta Air Lines (NYSE: DAL) today issued the following letter to its 80,000 employees worldwide. The letter, from Delta CEO Richard Anderson, has begun to arrive in homes of U.S.-based employees in advance of profit sharing payments to be made Feb.14, 2012:
Congratulations and thank you for a great 2011. Your hard work and dedication earned $264 million in profit sharing for Delta people. For you, that means payment on February 14 equal to 4.85% of your annual pay. Delta’s profit sharing program, the most generous in the industry, recognizes your contribution to Delta’s successful journey. Thank you.
Profit sharing symbolizes two important aspects of the Delta culture. First, it is a tangible way we share our success. Employees have earned profit sharing payments in three of the last five years. This underscores our values of dignity and mutual respect and our commitment to provide fulfilling careers for Delta people. Profit sharing is part of your total compensation that includes a competitive package of pay, benefits and work rules, along with additional opportunities to earn more when the company performs well. Delta people earned approximately $60 million in Shared Rewards throughout 2011. Since the introduction of Shared Rewards in 2005 and the Profit Sharing Plan in 2007, employees have earned more than $1 billion in total payouts. We look forward to implementing pay increases this year for U.S.-based employees in keeping with our commitment to industry standard pay. Pay for Delta people in non-U.S. locations continues to be implemented according to established timelines for those countries.
Profit sharing also reflects the unique ability of the Delta team to accomplish the goals we set for our company.
- We began our journey several years ago to strengthen our business in a way that allows us to be profitable even when fuel is high and the economy is weak. In 2011, we earned $1.2 billion in profit despite a $3 billion increase in our fuel expense.
- We aimed in 2011 to return to the top tier of the industry in operational performance. Compared to 2010, we improved our rankings against our competitive set from eighth to third in on-time; from eighth to third in baggage; and from ninth to fifth in customer complaints. Analysis by The Wall Street Journal recently ranked Delta’s 2011 operational performance second in the industry.
- We have continued a steady momentum of investments into our business that deliver a better product to our customers. Our work has earned us the top spot on Fortune’s Most Admired Airline industry list, a No. 1 ranking among U.S. airlines by Business Travel News and Travel Weekly, and recognition as the top tech-friendly U.S. airline from PCWorld.
We entered 2012 a stronger airline. The steps we have taken to change our business to be profitable in difficult times are certainly making a difference. This year we will use our momentum to become even better and continue to run the best airline in the world with friendly customer service every flight, every day.
On February 14, leaders across the company will host celebrations to salute you, the most professional men and women in the business. Take time to celebrate and congratulate one another.
We are proud of what we have achieved together. Let’s continue our focus in 2012 to seize the momentum and widen our lead. We want a bigger profit sharing payout for you for 2012.
Thank you for all you do for Delta every day.
Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2011 World’s Most Admired Companies airline industry list, and was named the “Top Tech-Friendly U.S. Airline” by PCWorld magazine for its innovation in technology. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 342 destinations in 61 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry’s leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline’s service includes the SkyMiles frequent flier program, a world-class airline loyalty program; the award-winning BusinessElite service; and more than 50 Delta Sky Clubs in airports worldwide. Delta is investing more than $2 billion through 2013 in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.
SOURCE Delta Air Lines