Scoop

Guys,


Look it ain’t easy, but then again it ain’t exactly like understanding cricket. This is how it was explained to me and I am going by my questionable memory so every detail might not be exact but the I think I retained most of the basics.

These numbers/groups are all notional for simplicity.

Assume DAL has a total PS pool of 1 billion. The company will then total the qualifying payroll of all eligible groups.

For easy number let’s just use three groups:

Pilots - 33% of payroll.
FAs - 27% of payroll
All others - 40 of payroll.

The Pilots PS is then 333 million to be divided based on qualifying income among Pilots.

The FAs PS pool is 270 million to be divided the same way. All of their PS percentage calculations are based on 270 million. This number does not change but their payout percentages can and did.

This is simple when we all have the same formula. When the company lowered the FA PS for those couple of years it had no affect on our 330 million. It did lower the FAs 270 million by some amount so it saved DAL money but had no impact on Pilot PS.

The key is the Total profit is divided into employee groups based upon each groups percentage of total qualifying payroll.

If the Pilots are 33% of payroll then our 10% and 20% numbers will be based off of 1/3 of our profit. If the FAs payroll is 27% then 27% of profits will be “their” pool and can pay a lower % without affecting our PS payout or percentage.

When DAL changed the % for the other groups it did not affect our payout but just lowered DALs total PS obligation.

In any case it looks like we will all have the same percentages going forward.

If any accounting majors out there can more precisely explain it please do so.

Scoop

notEnuf

The easiest way to think of your amount is your percentage of Delta's total payroll. If you make 250,000 and total payroll is $10B then you collect 250K/10B or 0.0025‬% of the entire PS pot. This is the same percentage for everyone now which translates to X% of your annual income or 15% of 250K. In this example the total pot would be 1.5B.

GogglesPisano

Or you could wait until Feb 14.

Iceberg

But how would I know how many wines and roses I could buy for the wife? I don’t want to go over budget, but if I short it, I sleep in the garage..

StartngOvr

AUPILOT1: aren’t you now sorry you asked?!


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notEnuf

Hired is not growth and yes reclaiming RJ flying is technically growth, but after shrinkage (or outsourcing) I'm fine with the situation but there is not significantly more flying after we gave the Atlantic to the JV and backed out of the Pacific. In the same time JB, spirit, amazon, and SWA have all grown more.

The JV is a way to redistribute capacity not grow Delta flying and the airline. the high water mark for Delta was 10,000 plus pilots and NWA was 8000ish, I've been told. We are nowhere near the combined historic high. As I said, I'm fine with our situation but no airline has grown pilot jobs significantly because of consolidation, efficiency and productivity.

Planetrain

Scoop, this is all correct. The crux of a lot of replies is when FAs get a raise (regardless of profit sharing plan); our “33%” (of total payroll) goes down because their 27% goes up. (In addition to total payroll going up, lowering the amount of profit to share). I’m all for everybody getting raises: flight attendants, pilots, above/below wing. This summer everyone has surely earned it. I think a lot of posters were just trying to point out that a raise to other groups has a mathematical effect of lowering our PS, both in cost and it’s effect of lowering our “33%” in your example.

AirbusPTC

Profit Sharing payout history:

2006: 0
2007: 5.5%
2008: 0
2009: 0
2010: 6.5%
2011: 4.9%
2012: 6.7%
2013: 8.3%
2014: 16.6%
2015: 21.46%
2016: 17.81%
2017: 15.10%
2018: 14.1%

Dstblj52

In case you guys are curious delta right now is doing 50-50 in terms of investing in assets vs rewarding shareholders, so once they figure out what they have made in profits and paid out the profit sharing, half that money goes back into the business, buying planes, adding maintenance lines, building new lounges, and other projects to grow or improve the company, while the other half is spent on buying back shares, buying shares in other airlines, or used to give investors a dividend. Not a pilot but I have some knowledge in business and that based on what Ed Bastian has explained publicly and in shareholder fillings.

WideRide

Profit sharing notes I’ve saved each year:

Profit sharing 2018:
5.1B Profit
14% of pay

Profit sharing 2017:
For the full year, adjusted pre-tax income was $5.5 billion, a $621 million decrease relative to 2016.
15.1% of pay

Profit sharing 2016:
For the full year, adjusted pre-tax income increased 4 percent year over year to $6.1 billion.
17.81% of pay

Profit sharing 2015:
21.46% of pay
Delta Air Lines has announced a pre-tax profit (PTIX) of $5.866 billion for 2015, excluding special items, which equates to $1.277 billion of unburdened employee profit sharing. The total profit sharing expense is $1.490 billion which includes additional Company costs for 401(k) and FICA.

Profit sharing 2014:
11.58% on Feb 14 (-5% advance from October)
16.58% total
For the full year 2014, Delta's pre-tax income, excluding special items, was $4.5 billion, a $1.9 billion increase over 2013.

Profit Sharing 2013: 8.26% (Roughly one months pay).
Profit Sharing and Pay:
Today, Feb. 14, Delta pilots received 8.26 percent of 2013 eligible wages in profit sharing payout. Your eligible earnings can be determined by looking at your year end pay stub and adding FLT PAY + FLT ADV.

Delta's net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012.