As a way of thanking its workforce, Delta will award a bonus of $1,250 per employee (or half of it, depending on specific requirements) on February 14. The payment is part of a profit-sharing of more than $100 million from the airlines.
Yesterday, Delta Air Lines reported full year profit for 2021. According to the report, Delta’s GAAP net income was $280 million, an achievement given that most airlines around the world are still feeling the impact of the COVID-19 pandemic. Few carriers elsewhere will report net income in their 2021 financial results.
Delta owes its employees this financial success, and is set to award each worker a $1,250 bonus if they work all year with the company. If not, they will get half the reward. Employees will get a nice paycheck on February 14, also known as Employee Appreciation Day.
Ed Bastian, Delta CEO, said in an internal memo sent to employees,
“Amid constant challenges, including one of the most challenging holiday environments we have ever encountered, you continue to rise to the top and provide unparalleled service to our customers. You will never falter in caring for each other, our customers, and the communities we serve. And you do so with excellence, care and compassion. , and that’s what has always distinguished Delta people.”
Not quite back to 2019 levels, but good enough
In 2019, the airline paid a record $1.6 billion in profit-sharing funds to its then-90,000 employees, Business Insider reported.
That year was the best in Delta’s history, and every employee of the company earned the equivalent of two months’ wages.
The COVID-19 pandemic has left the airline industry around the world in a crisis like never before. Two years into the crisis, most airlines around the world are still struggling financially, and new variants of COVID (like Omicron) are driving the recovery away.
Glenn Haunstein, president of Delta, said,
“The recent rise in COVID cases linked to the Omicron variant is expected to influence the pace of the demand recovery early in the quarter, with recovery momentum resuming from the President’s Day weekend onwards. Taking this into account in our forecasts, we expect total revenue for the March quarter to recover ( March) to 72 to 76% of 2019 levels, compared to 74% in the December quarter.”
A look at the results of Delta 2021
Had it not been for the Payroll Support Programs (PSP), Delta Air Lines would have experienced a pre-tax adjusted loss of $3.4 billion. The payroll program allowed the American carrier to receive a net benefit of $3.8 billion.
Delta generated pre-tax earnings of $1.1 billion in the second half of 2021, and if we exclude the PSP, the profit was only $386 million.
In the last quarter, Delta Air Lines generated operating revenue of $8.4 billion, following strong demand during the holidays. Domestic passenger revenue was restored by 78% compared to 2019 levels. Additionally, freight revenue posted positive growth for the fifth consecutive quarter. Income in this segment increased to $304 million, an increase of 63% compared to 2019.
What do you think about giving Delta $1,250 per employee? Let us know in the comments below.