Atlanta-based Delta Air Lines is giving back to its employees and making a difference this Valentine’s Day. The US legacy carrier said its annual profit-sharing investment practice made a multi-million dollar impact in communities across the country.
According to the carrier, the tradition has lasted since 2007 and is part of a substantive one-two punch to boost employees’ purchasing power. This year’s payment comes on the heels of Delta Air Lines CEO Ed Bastian’s announcement of a 5% pay increase for employees.
Nearly 100,000 employees
The payout amounts to more than $550 million, equalling about 5.5% of each employee’s 2022 pre-tax earnings. In a memo to all Delta employees announcing the pay increase, Bastian said,
“When we deliver for our customers, their loyalty drives continued reinvestment in you and our business. This virtuous circle is powered by our 90,000 people.”
Spread out across the country
Delta shared most of its annual profit in the state of Georgia, where its home base is located, with more than 40,000 set to receive more than $245 million in profit-sharing payments.
The investment is also substantial in other states, according to the carrier:
- More than $72 million in New York, home to Delta’s hubs at LaGuardia and JFK airports.
- More than $48 million in Minnesota, home to Delta’s hub at Minneapolis-St. Paul.
- More than $43 million in Michigan, home to Delta’s Detroit hub.
- More than $31 million in California, home to Delta’s hub at LAX.
- More than $30 million in Utah, home to Delta’s Salt Lake City hub.
- More than $29 million in Washington, home to Delta’s Seattle hub.
- Roughly $9 million in Massachusetts, home to Delta’s Boston hub.
“These cities represent a diverse cross-section of the US., reflected in Delta’s diverse workforce – and that means Delta people’s spending will benefit a diverse array of businesses owned by women and underrepresented ethnic and racial minorities,” said Professor Jeff Rosensweig, Director of Emory University’s Robson Program for Business, Public Policy, and Government.
Rosensweig also mentioned the annual investment is special for Delta’s workers because one-time payments are usually saved, but the carrier’s yearly payments “give employees the confidence to spend, to enhance their lifestyles or to make a special purchase.” He also predicted that most people would balance spending their payout and paying down debt or saving money for a rainy day.
Touching small businesses and underrepresented communities
But some of that money could also be spent locally, which would allow small businesses to expand. The expansion of those businesses would then enable a second round of spending, which would further fuel the growth of local companies that could then promote a third round of spending.
Delta’s employees can also contribute some or all of their profit-sharing payment to their 401(k) or to an emergency savings fund launched this year, which allows them to earn up to an additional $1,000 in savings funds from the airline.
The airline said half of its employees consist of underrepresented racial and ethnic groups. As of January 2023, more than 40% of the company’s workforce identifies as women. Over 50% of its employees are underrepresented racial and ethnic groups in some of the most diverse cities in the US, including Atlanta, Los Angeles, and New York.
Cre: Simple Flying
