View Poll Results: 2026 Profit Sharing Guess
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Profit Sharing 26 Rumors and Guesses
#91
Line Holder
Joined: Sep 2023
Posts: 323
Likes: 69
From: Former Hooterville
Each year around profit-sharing season, management promotes a narrative that they deserve full credit for both creating and paying out profit sharing. That is simply false. The profit-sharing program exists because it was negotiated by the pilot union—period. Since its inception, management has worked to reduce its value, not expand it. I am merely setting expectations for the next profit-sharing letter.
#92
On Reserve
Joined: Nov 2019
Posts: 41
Likes: 0
So say i’m an idiot ( I am). Is there a way to calculate/know how much you need leftover to pay alpa dues? For reference I plan on putting 75% into my pretax 401k to try and max that out as early as possible in the year.
#93
If you don't leave enough, ALPA will eventually sort it out and send you an invoice. Its not a big deal.
#94
Gets Weekends Off
Joined: Jul 2010
Posts: 12,823
Likes: 166
From: window seat
I’d rather see today’s 8.9 with today’s W2 than the 17% days with the corresponding W2.
Saying we stopped climbing because we got almost 9% PS is pretty jaded even in this industry.
#95
Gets Weekends Off
Joined: Jul 2010
Posts: 12,823
Likes: 166
From: window seat
Many of you may have, by now, read the 13JAN26 “Profit Sharing” article published today by management. Articles like this appear regularly in the run-up to the February profit-sharing payout. Typically, the message implies that Delta pays profit sharing purely out of goodwill. This year’s first letter is somewhat more restrained and does not state that directly, but once again there is no mention of the Delta Air Line Pilots Association’s role in securing employee profit sharing.
Now is a good time to remind the uninformed that the Delta Air Line Pilots Association—our union—negotiated the profit-sharing program in 2004 under LOA #46 (2004) (see Delta Pilot’s Contract History). This agreement coincided with the termination/freeze of our pensions and the first of two major pay cuts. That initial cut was 32.5%. Management told us these concessions were necessary to avoid bankruptcy, and the union approved the agreement on that basis. Ten months later, Delta filed for bankruptcy on 9/14/05—the same day as NWA. Coincidence?
The bankruptcy led to LOA #50 (2005) and LOA #51 (2006), along with the termination of our pilot pension and transfer to the PBGC. A second pay cut followed—an additional 14%. In exchange for these concessions, the pilot union negotiated profit sharing at 15% of pre-tax income, and 20% on pre-tax income over $1.5 billion. Delta and NWA announced their merger on 4/14/08.
Since then, Delta management has repeatedly sought—and in some cases succeeded—in reducing the profit-sharing formula. The first reduction occurred in 2008: profit sharing dropped to 10% of pre-tax income up to $2.5 billion, and the 20% threshold was raised from $1.5 billion to $2.5 billion.
Each year around profit-sharing season, management promotes a narrative that they deserve full credit for both creating and paying out profit sharing. That is simply false. The profit-sharing program exists because it was negotiated by ethe pilot union—period. Since its inception, management has worked to reduce its value, not expand it. I am merely setting expectations for the next profit-sharing letter.
Now is a good time to remind the uninformed that the Delta Air Line Pilots Association—our union—negotiated the profit-sharing program in 2004 under LOA #46 (2004) (see Delta Pilot’s Contract History). This agreement coincided with the termination/freeze of our pensions and the first of two major pay cuts. That initial cut was 32.5%. Management told us these concessions were necessary to avoid bankruptcy, and the union approved the agreement on that basis. Ten months later, Delta filed for bankruptcy on 9/14/05—the same day as NWA. Coincidence?
The bankruptcy led to LOA #50 (2005) and LOA #51 (2006), along with the termination of our pilot pension and transfer to the PBGC. A second pay cut followed—an additional 14%. In exchange for these concessions, the pilot union negotiated profit sharing at 15% of pre-tax income, and 20% on pre-tax income over $1.5 billion. Delta and NWA announced their merger on 4/14/08.
Since then, Delta management has repeatedly sought—and in some cases succeeded—in reducing the profit-sharing formula. The first reduction occurred in 2008: profit sharing dropped to 10% of pre-tax income up to $2.5 billion, and the 20% threshold was raised from $1.5 billion to $2.5 billion.
Each year around profit-sharing season, management promotes a narrative that they deserve full credit for both creating and paying out profit sharing. That is simply false. The profit-sharing program exists because it was negotiated by ethe pilot union—period. Since its inception, management has worked to reduce its value, not expand it. I am merely setting expectations for the next profit-sharing letter.
While it was 100% DALPA for sure, I think it’s safe to say no one, ever, thought it would become what it is today. What was our biggest profit pre-merger? Wasn’t it around 1 to 1.5B even during the peak of the dot com bubble money train? I don’t think anyone on either side really believed there would be sustained profits at these levels. DALPA threw the bat at an 0-2 changeup out of the zone just trying to stay alive and ended up with an opposite field home run.
#99
Banned
Joined: Sep 2016
Posts: 8,831
Likes: 499
so, the $100m figure is pretty doubtful to me
#100
I could do a decent Fermi estimate on it.
Lower bound.. Number of 23M7s x 5:15 x a reasonable 30th percentile in category (some super senior 23M7 farmers, some lucky one offs lower)
Say 8 years for NBA, and 12 years for WBA
4 years for NBB, 10 years for WBB
That would give us our lower bound. Considering the median trip is probably 3 days here, 15:45 x number of 23M7s is the more realistic number.
Total cost would probably have a lower bound of 2x the 23m7, and realistic would be 2.5 or so x 23M7, since best case scenario, they are skipping coverage and hitting a RES, but for all the 23M7s that go as IAs or GSs, they are paying 2x on top of the 23M7 payout.
Couple beers into the evening, but If anyone has those numbers handy, I could do some fast math on it.
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