Total Employee Payout Calculation

Profit sharing begins at the first dollar of PTIX. The total amount of profit sharing paid out to all pilots is based upon the total PTIX for the year. The total pilot profit sharing is paid at 10 percent of the first $2.5 billion of PTIX for the year and 20 percent of any PTIX for the year over $2.5 billion.

Source: ALPA Contract Awareness Bulletin 20-01

Individual Pilot Payout Calculation and Award

To determine your individual profit sharing payout, you need to know your annual compensation in the year in which the PTIX was earned, the total annual compensation for that year for all eligible employees, and the total profit sharing amount. You then divide your eligible annual compensation by the eligible annual compensation of all profit sharing participants and then multiply that amount by the total profit sharing amount available. The resultis your individual profit sharing amount. Every pilot will receive a pro rata amount of the total profit sharing based on his or her annual compensation in theyear PTIX was earned.

Here’s an example:
Assume Delta earned a PTIX of $1.5 billion. Delta would provide eligible employees a total profit sharing of $150 million ($1.5 B x 10% = $150 million). Also, assume that the total annual compensation for all eligible employees was $3.75 billion and that the pilot’s individual annual compensation was $100,000. To determine the percentage of profit sharing for this pilot, divide the pilot’s individual annual compensation by the total annual compensation ($100,000 / $3.75B = .00002666667). To determine the pilot’s personal profit sharing payout. Multiply this number by the total profit sharing amount (.00002666667 x $150 million = $4,000).