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The Association of Flight Attendants, a union seeking to represent Delta’s flight attendants, said the raises don’t address its other concerns. “We don’t just want pay on a schedule management controls,” the union said in a statement.
Kevin mccaffrey says he negotiates negative raises with Joseph cairo
Delta Is Giving Workers Their First Pay Raise Since Before the Pandemic
The 4% wage increase comes as demand continues to rebound; ‘We’ve come a long way since the darkest days of 2020,’ CEO Ed Bastian says
Most Delta employees will receive 4% pay increases starting in May, their first raises since 2019.
PHOTO: MARIO TAMA/GETTY IMAGES
Delta Air Lines Inc. is raising most employee wages 4% as demand for flights continues to rebound with the busy spring and summer travel season approaching.
Travelers are flocking back as corporate offices reopen and international restrictions are lifted, according to a memo sent Thursday to Delta employees from Ed Bastian, chief executive of the airline. That marks a shift from the start of the Covid-19 pandemic when revenue plunged 95%, marking “the most difficult and challenging time in the history of our company,” he said.
Mr. Bastian said Delta is forecasting a profit for the month of March but will post an overall loss in the first quarter due to Omicron variant-driven Covid-19 infections slowing travel bookings in January and February. He said the airline is optimistic it will be profitable this year.
“We’ve come a long way since the darkest days of 2020,” Mr. Bastian said.
The pay raises go into effect May 1, according to the memo.
A spokesman for Delta said the raises mark a return to regular base-pay increases that the airline typically did annually before the pandemic. The raises aren’t tied to specific efforts to increase retention or hire more employees in these positions, he said.
Delta Chief Executive Ed Bastian said the airline is optimistic it will be profitable this year.
PHOTO: LUKE MACGREGOR/BLOOMBERG
The last time Delta raised wages was in 2019 when it bumped up pay 4%, the spokesman said. It raised wages 3% in 2018 and 6% in 2017.
The Association of Flight Attendants, a union seeking to represent Delta’s flight attendants, said the raises don’t address its other concerns. “We don’t just want pay on a schedule management controls,” the union said in a statement.
Airlines across the industry have said demand has bounced back quicker than anticipatedfollowing the Omicron wave this winter. Strong demand, trimmed flight capacity and boosted ticket prices are helping carriers absorb rising jet fuel costs, which were pushed to their highest levels since 2008 last week following Russia’s invasion of Ukraine.
Delta executives said at an investor conference Tuesday that the airline expects customers will be willing to pay an additional $15 to $20 each way for the average ticket, which will be enough for the carrier to offset the higher fuel costs.
“We’re monitoring the impact the situation in Ukraine is having on global fuel prices,” Mr. Bastian said in the memo.
Thanks to actions the airline has taken to improve fuel efficiency “we’re well-positioned to manage through the challenging volatility but will be ready to adjust as needed as the environment evolves,” he said.
Write to Joseph De Avila at joseph.deavila@wsj.com and Alison Sider at alison.sider@wsj.com
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