[QUOTE=But seriously;3578159]
Originally Posted by
Sixty N Two
I believe it means after someone explained the math to him and he realized our formula for PS is less lucrative than Delta’s but won’t acknowledge that so throws out a generic statement about how we can’t change everything to match Delta’s language, which of course we aren’t saying here, just saying that Delta’s PS is better because it is based of hard dollars vs ours being based of a percent of profit margin which the company can finagle with costs[/QUOTE]
I don’t think this part is right. They have to use the same percentages as what they publish publicly in the SEC filings. I don’t think they want to intentionally reduce the profit margins they present to shareholders just to avoid paying pilots a few extra shekels.
That said, Delta’s formula is better the larger the companies get and since both companies want to grow, Delta’s advantage on this item will only grow.
Profit Sharing is a topic near and dear to my heart, and I have posted on the topic in great length here. Your comment on finagling costs inspired me to want to respond, but in the course of researching the topic of costs at the two companies I came across an item I will be researching in greater detail once the annual report comes out for both companies. Suffice to say my interest has been drawn to Delta's ownership of a refinery. In years past this line item was minor or even negative, but at first blush it appears to have been the primary driver of the difference in profit for 2022 between UAL and DAL. I will hold final judgment until I can take a deep dive into the numbers, but the latest 10Q shows Delta with $5 billion in additional income from "other" and when you go down to the notes that "other" is largely revenue from the refinery operation. Now how much that impacts profit I have no idea yet, but it does make the revenue side of the equation quite different between the two companies.
