Delta Air Lines distributes $313 million in profit sharing to its 80,000 employees

Delta Air Lines (Atlanta) today issued the following memo from CEO Richard Anderson to its more than 80,000 employees worldwide:

“Congratulations and thank you! Today Delta is paying out $313 million in profit sharing – a direct result of your hard work and dedication that enabled Delta to record a $1.4 billion profit for 2010. We continue to deliver on our commitment to share Delta’s successes with those who make it possible.

Profit sharing is not a one-time payout. Instead, it is part of your total compensation that includes a competitive package of pay, benefits and work rules along with additional opportunities to earn more when the company performs well. This year’s profit sharing continues the momentum that we’ve gained during the last four years, enabling continued investments in our people:

Coming out of bankruptcy in 2007, Delta employees received $1 billion in incentives and improved compensation and benefit programs.

For our strong financial performance in 2007, employees earned $158 million in profit sharing.

As a testament to the airline we would build together, Delta employees were granted 15% equity in the combined company following the close of the merger in 2008, valued at approximately $900 million at the time of distribution.

For solid operational performance in 2009, Delta people earned approximately $66 million through monthly operational performance bonuses.

For three consecutive years, Delta increased base pay for frontline people, making good on a pre-merger promise to bring Delta base pay rates to industry-standard by the end of 2010.

And today, as a direct reflection of your hard work and our merger’s success, we are sharing the largest profit sharing payout in our airline’s history.

During the toughest of economic times this industry has faced, we kept our deals. When other major airlines were announcing involuntary furloughs, outsourcing and hiring freezes – Delta kept its commitment to no frontline involuntary furloughs as a result of the merger; we were bringing Reservations jobs back to the U.S.; we were insourcing in TechOps, Cargo and Airport Customer Service; and, in the last year alone, we added more than 4,000 new frontline jobs.

In 2010, we completed virtually all our merger integration, expanded our global network, strengthened our industry-leading joint venture and alliance relationships, and began a massive investment in our product and the technology that supports the way we do business every day. Our progress has been remarkable.

I hope you’ll all take some time today to celebrate with one another. We’re proud of what you’ve achieved. And, in addition to celebrations your leaders are hosting today across the system, full-page advertisements in USA Today, the Minneapolis Star Tribune, the Detroit Free Press and the Atlanta Journal-Constitution newspapers salute you, the best employees in the world.

It’s a good time to be at Delta Air Lines. Our plan is working and while we have a great deal of work ahead of us, our opportunities are tremendous. With the dedication and determination of Delta people, I have no doubt we’ll successfully face the challenges of 2011.

Thank you for all you do for Delta every day.”

Copyright Photo: Michael B. Ing. Please click on photo for aircraft details.