Airline Pilot Central Forums - Oil prices and profit sharing

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- - Oil prices and profit sharing (https://www.airlinepilotforums.com/delta/118037-oil-prices-profit-sharing.html)

Quote:

Originally Posted by Denny Crane (Post 2726836)

Ours is unaffected. The company may have less cash on hand to give shareholders and themselves, but pilot PS us unaffected by non-pilot PS.

Quote:

Originally Posted by TED74 (Post 2726837)

Ours is unaffected. The company may have less cash on hand to give shareholders and themselves, but pilot PS us unaffected by non-pilot PS.

I agree except for the overall affect of higher wages for all employee groups on the company’s bottom line.

Denny

Quote:

Originally Posted by Denny Crane (Post 2726836)

Riddle me this. Our PS didn’t change when theirs was reduced. How can ours be changed when theirs is increased? I understand that they will make more money but isn’t that taken into consideration as a business expense prior to money being put into the PS pool?

And it looks like they have.......at least according to a rep. I don’t know the actual numbers put aside between this year and last year thru the 3 quarters.

Denny

I crunched the numbers after the Q3 results. It's just shy of 200M ahead of last year. 803M was in the coffers last year vs. 978M or so this year. Take it for what you will.

Quote:

Originally Posted by Denny Crane (Post 2726836)

Their profit sharing itself doesn't affect ours, but if you are using the total dollar figure of profit sharing to be paid out (amount in the pool), it is relevant. Basically, you can't compare year to year pool amounts and get a realistic answer when the pool total doesn't just represent pilots.

Quote:

Originally Posted by Crown (Post 2726847)

I crunched the numbers after the Q3 results. It's just shy of 200M ahead of last year. 803M was in the coffers last year vs. 978M or so this year. Take it for what you will.

Non-pilot PS formula changed in q4 2017. You can’t directly compare those numbers.

And who cares? We’ll all get a five-figure check. Stop trying to sharpshoot something several months out. It won’t matter at all if it’s 12.5% or 13.7%

Quote:

Originally Posted by OOfff (Post 2726856)

Can I have your extra 1.5%? :D

Quote:

Originally Posted by Crown (Post 2726847)

I crunched the numbers after the Q3 results. It's just shy of 200M ahead of last year. 803M was in the coffers last year vs. 978M or so this year. Take it for what you will.

Thanks for the actual numbers!

With a 4th quarter that will probably beat last year, it will be interesting to see what percentage we get.

Denny

One truth, the profit sharing program was bought and paid for by the pilots. Management has tried to reduce the program, we stopped that effort. If we had given in, nobody at delta would be receiving a check in February.

Quote:

Originally Posted by Denny Crane (Post 2726697)

Ok, thought I’d resurrect this thread from the dead (page two).:). This question is directed at those predicting a smaller PS percentage than last year.

I just read a post on CC by one of our Reps that said the amount put aside in the PS pool thru 3 quarters is $175 million more than it was last year. If this is the case and with quarter four looking really good because of lower fuel costs, why should we not have a PS percentage at least similar to last year if not more?

Denny

Because 50% of it will go to the A350 Captains leaving the other 50% to the rest of the 13,500 or so Pilots. :D

Scoop

Quote:

Originally Posted by Denny Crane (Post 2726836)

It's sorta difficult to explain on here, but the company doesn't report to investors the amount of profit sharing they have set aside *only* for pilots, they just report the total amount of PS they have set aside (investors don't care who the money is going to).

So basically it's like this (these numbers are just an example):

Total pot (this is the reported number) = pilot's PS + all other employee's PS

2017:
Pilots' PS = 100 million
Other emp = 50 million
Total pot = 150 million

After 2017 the non pilot employees' PS formula changed, requiring the company to set aside more money. In this example we'll say that Delta's pre-tax profit is identical year to year.

2018:

Pilots' PS = 100 million
Other emp = 100 million
Total pot = 200 million

The pot got bigger, but pilots' total amount remained the same. The percentage of your salary could change year to year though based on how many total pilots we have and based on their total compensation.

Did that help? :D