Profit Sharing
 

Profit Sharing is up...seems smaller each year.

It's 1.4%, down from 2% from last year. At some point the shareholders will force the CEO out.

Are you getting dividends and profit sharing mixed up?

What’s the difference in profit sharing from Envoy to AA mainline? Buddy of mine showed me his profit sharing from mainline and it was seriously disappointing. You’d think that mainline would get more than $1500.

No, if you search profit sharing in jetnet there are articles referring to this year and last year. The article for 2017 says 2%, this year's says 1.4%.

Hell if you want to talk dividends, AAL has a yield of 1.2%. $0.10 per quarter, you can find some much better places to put your money than AAL. No growth to the dividend, share price has lost 40% in the last year without the recovery seen in other legacy carriers. DAL down 7% in the last year, UAL up 26% in the last year.

The CEO will answer to the share holders at some point if the operation can't churn butter.

According to the profit sharing article, it's 1.4% across the company. Assuming he made around 150-170k, that's about what it would be after taxes, union dues and 401k.

Different companies pay different amounts, I hear stories about Delta guys getting 60K.

Sounds like Delta is the place to be

I am not going to complain about free money, but AA has some of the lowest profit sharing out there. Delta has an amazing system.

AA is a scary place right now, a very underwhelming contract, and profit sharing. Increasing debt with shrinking profits, Plus a shrinking airline ( go read the August vacancy thread over on AA thread)
I don't have high hopes for their upcoming negotiations either.

You’d think that mass retirements would at least protect pilots on property from the worse case scenario, a furlough.. so maybe there’s that?

I really wish they would stop trying to play lowest bidder with Spirit and Southwest. I really think we need to aim higher.

https://www.fool.com/investing/2018/06/10/american-airlines-ceo-doug-parker-is-deep-in-a-mes.aspx

It's all based on your income. A junior Envoy CA and a first year AA FO very well may have similar payouts. Delta pays out substantially more to its pilot group because they get a much bigger slice of the pie while AAG dishes out slices to every single employee at AA, PDT, PSA and Envoy.

https://viewfromthewing.boardingarea.com/2019/03/05/financial-analyst-asks-americans-ceo-maybe-your-revenue-lags-because-your-product-is-poor/

I laughed at this. I wish Parker would have acknowledged it instead of changing the subject.

My read on all this is AA is letting go of Delta’s coattails somewhat and grabbing onto Allegiant’s, only still capacity dumping and doing fortress hubs.

AA shas the best food, for now.

This is extremely old news

The contract is already in renegotiation to be opened up later this year. Should see improvements.

I have said this in multiple places as this was my life for 5 years before coming to Envoy, but AA has more ASM overlap with the ULCC airlines than either DL or UA combined. When AA was not matching ULCC pricing, AA was losing considerable market share at the expense of revenue...even though we were taking yields that where in parity with DL+UA.

Now the issue is we have gone too much the other way...and it seems that now our high yielding passengers are no longer willing to give us the higher yields that they are on DL+UA. That being said, with our stock at ~35/share - Wall Street is asking questions and will demand change...otherwise they will force change.

I still have every confidence in AA, and look forward to working there in the future.

I am not going to comment on the debt as I never worked in treasury or capital planning...but you don't buy 500+ aircraft and expect to be debt free.