Delta Air Lines has announced a 5% increase in employee pay, the second time in less than a year that the company has boosted salaries for its workers. This move comes as the travel industry experiences a strong recovery and profits for Delta improve, coupled with a tight labor market in the United States.
The first pay increase for Delta employees, 4%, was implemented in May, marking the first time salaries had been raised since before the outbreak of the pandemic.
Given the severe losses we experienced during the pandemic, including a $1 billion loss in the first quarter of last year, this is truly a remarkable accomplishment,” CEO Ed Bastian stated in a memo to employees on Tuesday.
“I have complete faith that our high-performing culture will drive us to new heights in the coming months and years, and that the pool of payouts will continue to expand.”
Delta announced that the pay increase of 5% for its employees will take effect on April 1st and will be applied to both ground workers and flight attendants.
However, this does not include the company’s pilots, who are currently voting on a new contract proposal that includes a raise of 34% over a period of four years, with an initial 18% increase upon ratification.
Despite facing a loss of over $12 billion in 2020 during the peak of the pandemic, Delta was able to recover and posted a profit of $1.32 billion last year. In light of this success, the company is also set to distribute more than $550 million in shared profits among its staff later this month, as stated by CEO Ed Bastian in a staff note on Tuesday.
