Delta announced plans to increase wages for their frontline workers, as well as providing 5% raises to all employees following record profits. This decision will impact around 80,000 employees, with the raises set to begin on June 1. In addition to the raises, Delta CEO Ed Bastian stated that the airline will create a “5% merit pool” to reward employees based on individual performance and market standing. The minimum starting wage for frontline employees will be raised to $19 an hour, excluding pilots who recently received a 34% raise through a ratified contract.
Delta’s decision to increase wages comes as they anticipate a busy summer travel season and after paying out $1.4 billion in profit sharing bonuses to employees. The $19 starting wage will apply to employees such as flight attendants, mechanics, and ground handlers, among others. Despite this increase, Delta is one of the largest U.S. carriers without unionized flight attendants. The Association of Flight Attendants had previously launched an organizing campaign at Delta in 2019, though the carrier’s flight attendants narrowly voted against forming a union in 2010.
In the first three months of 2024, Delta reported a $37 million profit, traditionally a slower quarter for airlines. The carrier also reported operating revenues of $12.6 billion in the first quarter. Delta’s decision to increase wages and provide raises to employees comes as they continue to experience financial success. The airline is focused on rewarding its employees for their hard work and dedication, with the goal of providing industry-leading total compensation for top performance.
The Skift Travel 200 (ST200) tracks the financial performance of nearly 200 travel companies worth over a trillion dollars, including airlines and other related companies. It provides an overview of the sector’s stock index performance year-to-date, giving insight into how airlines are faring in the market. By combining the financial data of various travel companies, the ST200 offers a comprehensive look at the industry’s overall performance.
Overall, Delta’s decision to increase wages and provide raises to employees reflects their commitment to rewarding their workforce and maintaining industry-leading compensation for top performance. The airline’s strong financial performance in the first quarter of 2024 demonstrates their ability to invest in their employees while continuing to thrive in a competitive market. The decision to raise the minimum starting wage for frontline workers and provide merit-based raises further highlights Delta’s dedication to supporting their employees and ensuring their success in the long term. By prioritizing employee satisfaction and compensation, Delta continues to position themselves as a leader in the airline industry.
