Delta Is Giving Away 1% of Its Profits to Charity

Instead of compensating the Pilot group properly....

SOURCE

That could amount to $37 million.

Delta Air Lines will donate 1% of its net income to charitable organizations.

The carrier will start its commitment this year, and barring unforeseen financial circumstances, Delta DAL -2.72% is set to give away around $37 million to charitable organizations worldwide, according to an open letter shared by incoming CEO Ed Bastian to his employees.

“2015 was a remarkable year for Delta, and the communities we call home should share in this success,” he wrote.


The airline reported a net income of around $4.5 billion in 2015, which was nearly six times more than the previous year’s figure of $659 million. Its growth was driven in large part by a record-breaking fourth quarter and a drop in adjusted fuel expenses over the previous year of $726 million.

Delta didn’t specify which charities would receive its donations, which will be fulfilled through cash contributions, in-kind travel and grants. But the Atlanta-based carrier did list a few key areas that the company is committed to, including education, arts and culture, the military, and the environment.

The carrier’s ability to follow through on its commitment to charity will depend on its performance this year. While cheap oil prices have benefited airlines like Delta and American Airlines AAL -1.18% , industry-wide competition that has been lowering air fares could also have a bearing as airlines could be driven to reduce margins per seat to fill its planes.

 

So the jv settlement was less than that?

 

Well played by management. One, it is the right thing to do among other reasons. Additionally, it will garner more than $37M worth of perceptual influence when it ALPA starts picketing and awareness campaign.

So, in the last two weeks, management has changed the perception of the public by telling everyone that all Delta pilots make between $130k-$330k and yet are asking for 40% raises, and they have said they will return $37M to the community this year, but may not be able to next year if margins are reduced.

 

The portion of the 35% whining about their lost income can feel good it is going to charity. They should ask DL for the write off.