Originally Posted by
ghilis101
Economic research suggests that labor costs less of a percentage of operations costs than you might think. I am certain that ALPA sends you guys this data, I cant speak for DAL but at my airline its around well under 10%. We could get fedex pay rates tomorrow, and that number would still be under 10%...
Quite agree. I would estimate that Delta's pilot cost are around 7% of its total operating costs, i.e., not including debt servicing, etc. That means that we could go up by 30-40% (another $750M - $1B) before we'd hit the 10% mark.