mesaba13

Any educated guesses on ps check for feb in light of retro cost. Heard 18%

TED74

I'm going with 12%, so anything above that will be gravy.

notEnuf

I think it will be similar to last years payout or more. YTD accruals are down but that's because of the non-con's reduction. Still on track for us.

The profit sharing audit is in January after the Q4 results are in. DALPA will conduct the audit and publish the PTIX and percentage calculations verification then.


Latest investor update.

https://www.sec.gov/Archives/edgar/d..._8k-ex9901.htm

TED74

If it were the same payout with the same seniority list, the dollar figure that equated to 21.4% would equal 18.1% of one's higher income (all else being equal). With more pilots sharing the same or similar pot, I'll be pleasantly surprised if the number is as high as 18% this year.

What remains to be seen is what creative accounting practice(s) the company might employ to reduce PS payout.

notEnuf

That's why we do the audit, there is a resolution pending at the MEC to publish the audit to the members. Given the time line and the transparency issues, they can't not publish the audit results. This would comply with the resolution and not require more time and effort in committee.

notEnuf

I found the resolution but it was too late to add it to the previous post.




DELTA MASTER EXECUTIVE COUNCIL March 8 – 12, 2015 Minneapolis, MN

AGENDA ITEM # AI 16-28 COMMITTEE # 2 MAKER: HAZZARD SECOND: HAZLETON

MOTION # VOTE: PASSED

WHEREAS Delta management has expressed a change in accounting practices during the question and answer period of the 2016 Investor Day presentation, which has led to questions from Delta pilots, and

WHEREAS these changes have the potential to reduce both PTIX and the amount paid to pilots in annual profit sharing, and

WHEREAS the Delta MEC desires to provide the Delta pilots with a more transparent accounting of the Profit Sharing Plan.

THEREFORE BE IT RESOLVED the Delta MEC directs the Delta MEC Chairman to use all appropriate resources to publish a report of the Profit Sharing calculations and distribution of Profit Sharing funds to the greatest amount of practical detail for 2015 and to the extent possible, for all previous years. The report should include a summary accounting of the GAAP pretax profit calculation and adjustments used to arrive at PTIX as defined in the PWA.



DRAFTING COMMITTEE VOTE: UNANIMOUS

Schwanker

The PS check will be fairly close whether this passed or not. The 18%, vs 20+%, is not due to the retro cost. It's due to the higher compensation. Granted, the total profit will be less but OUR SHARE of the profit will be greater (less diluted from other employee wages).

18% of 220K = 39.6K
21% of 186K = 39.6K

The PS piece is a smaller percentage of our total compensation as our base pay increased.

sailingfun

2016 4Q profit sharing estimated at 170 million. 2015 4Q was 380 million. Pilot retro check is about 100 million in that reduction. The other 110 million is the continued reduction in revenue.

BobZ

the important point is we didn't use it to pay for our 'pay raises'.

hopefully it has now been installed as a durable, perpetual component of our working agreement.

Charlie17guy

Other news sources say the retro check is $475M.

"Delta now expects its nonfuel unit costs, including profit sharing, to spike around 10%, well up from the 1%-2% increase forecast when the company reported third-quarter results in October. The carrier expects operating margin of 9.5%-10.5%, down from a forecast of 14%-16% given in October.

The earlier outlook, Delta noted then, did not factor in costs from any deal struck with pilots. On Friday, Delta said its new pilot contract included a retroactive adjustment that would be accrued in Q4 for a total cost of $475 million. Excluding the labor deal, operating margin would be at the higher end of the forecast the carrier gave in October, Delta said."

Delta's Costs Spike But Yields Improving; Southwest Breaks Out | Stock News & Stock Market Analysis - IBD