Profit Sharing?
01-19-2023 | 04:29 PM
#101
Line Holder
Joined: Jul 2014
Posts: 870
Likes: 25
So you think our expenses are going down? Despite adding a net 1500 pilots per year and net growth a/c? I’m expecting a contract in 2023 so add in those billions to the expense line. I don’t have your sort of optimism that costs will be reigned in while we execute United Next. I think expenses go up over time as history has shown they do. Cost of everything has gone up with inflation. I don’t think looking back at expenses is realistic. If we don’t shrink costs only go up.
01-19-2023 | 06:35 PM
#105
Gets Weekends Off
Joined: Apr 2008
Posts: 1,808
Likes: 0
01-20-2023 | 02:28 AM
#108
Gets Weekends Off
Joined: Aug 2008
Posts: 1,512
Likes: 0
From: 787 Captain
It's amazing how many people on here and other United forums constantly advocate for worse benefits and QOL for the fellow pilots they work with just because "that's the way it's always been". They are truly of a different generational mindset and there's no point in trying to debate them or change their point of view. Luckily they will be outnumbered soon enough.
01-20-2023 | 05:33 AM
#109
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Joined: Sep 2010
Posts: 1,725
Likes: 0
From: UAL retired
So you think our expenses are going down? Despite adding a net 1500 pilots per year and net growth a/c? I’m expecting a contract in 2023 so add in those billions to the expense line. I don’t have your sort of optimism that costs will be reigned in while we execute United Next. I think expenses go up over time as history has shown they do. Cost of everything has gone up with inflation. I don’t think looking back at expenses is realistic. If we don’t shrink costs only go up.
This from a post I made in 2019:
Understanding and Predicting PS
So first 6.9% of $43 million = $2.967 billion and that is the amount of profit of which we get 10% then $3.8 - $2.967 = $833 million and that is the amount of profit of which we get 20%.
So $2.967 x .1 = $297 million / $7774 oayroll = 3.8%
and $833 x .2 = $166 million / $7774 payroll = 2.1%
Finally 3.8 +2.1 = 5.9%
If payroll goes up 5% the percentage falls to 5.6%.
If we save a $1 billion dollars in fuel the percentage goes up to 8.5% or said another way - every $100 million in fuel savings adds about 0.3% to PS.
So $2.967 x .1 = $297 million / $7774 oayroll = 3.8%
and $833 x .2 = $166 million / $7774 payroll = 2.1%
Finally 3.8 +2.1 = 5.9%
If payroll goes up 5% the percentage falls to 5.6%.
If we save a $1 billion dollars in fuel the percentage goes up to 8.5% or said another way - every $100 million in fuel savings adds about 0.3% to PS.
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