Delta employees must be very happy after knowing the airline will be rewarding its workforce by giving 2-month extra pay after a high-performing 2019.
Delta Air Lines had a very good year last year and it announced it would pay them $1.6 billion in profit-sharing bonuses. Every eligible employee will receive a check next month for 16.6% of their annual salary, which is the equivalent of an additional two months’ pay.
“Delta would be nothing without our 90,000 people. They deserve all the credit,” Delta CEO Ed Bastian said on LinkedIn.
A Delta spokesperson said it is the sixth year in a row that the company has paid out more than $1 billion to workers. Delta earned $4.8 billion in 2019, a figure 21 per cent higher than the previous year.
According to CNN, ‘’the airline earned $4.8 billion in 2019, up 21% from a year ago, as the fourth quarter easily topped both its own guidance and Wall Street forecasts. Revenue rose 6% to $47 billion for the year, as the fourth quarter again beat forecasts.’’
Delta shares grew 4% in early afternoon trading following the earnings report. “As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results,” said CEO Ed Bastian.
Delta is expecting revenue in the first quarter to be up between 5% and 7%, driven largely by higher passenger numbers rather than higher fares.
“We’ve clearly been a beneficiary, and as long as the Max stays out of the sky, I guess, we’ll continue to be one,” Bastian told investors on a conference call Tuesday.
“We’ve all been watching the Max story for the last year, and none of us has a very good crystal ball,” he said.
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