Any math wizards want to take a stab at the final % now that earnings are out?

Not sure which of the annual profit numbers to use, but based on what the earnings showed for 2022 and what they used for 2022, I think it is the higher number for 2023 or 4.3 Billion.

Also don't know how much the total pool of eligible employee salaries went up, but assuming that went up by 15% across the entire company on average, then I think we will get about 6.7% of your earnings plus 2023 retro

I *think* Delta uses pre-tax income to run the numbers off of.

Formula different for this year then 22.

True-

Tried to take that into account.

$2.5B in the 10% bucket.
The remaining $1.8B in the 20% bucket.

The earning report showed a 28-29% increase in employee salary cost for the company.

Applying all of that to the numbers would be as low as 6%. If it was only a 15% increase in eligible salary, then it will be up around 6.7%.

Again this all assumes that we have $4.3B in the profit pool and I am not sure how to confirm that until the actual numbers come out.

The numbers are out.
3.387b pretax.

427.4 million is the pilot specific pool, per the new formula in place.

Most Junior on property Dec 2022 was a ~14700 seniority based on the standardized list.
~$29k per pilot if split evenly.

If you assume the average wage was $300k, the profit sharing chunk would be 9.7%.

This is sans 401k DC, not sure how that plays into the formula.

Not sure where you got the 427million for pilots, but I do see that they have over 5 times the amount of money in the 2023 profit sharing pool($681M) compared to the 2022($133M) for all employees. Figure the pilot's formula was the only one that changed, so that math would mean an over 9% payout! So the 9.7% you have above could be pretty dang close.

The $427M is just the profit sharing formula based on a pre-tax income of $3.387B.

I've done a little research on this, and the hard part with the earning release that they put out DO have a pre-tax income number.....

But Wall Street wants the number AFTER profit sharing has been subtracted. The pool of profit sharing money is derived from Pre tax BEFORE (obviously) PS has been taken out, but that's not public mostly bc Wall Street doesn't care about it.


It's hard to reverse engineer the pre tax income from reported (after PS is taken out) to the true pre-tax number, at least for me. So it's hard to calculate what goes into the pool accurately.

Good thing is as of today the pool number is out, $681 million, which was straight from United press release.

Not quite sure how to get from there to the percentage, but some of you guys seem to know.

Ok, that is the problem then.

Right now there are 3 (at least) different formulas for profit sharing depending on which employee group you are in. Each groups portion is calculated based on their formula, but is only applicable to that portion they represent of the total eligible employee pool of earnings. So that is why this is so difficult to determine what we will get.

The $427M you have is based on the $3.387B and just using the pilot formula for every employee. However not everybody is covered by that formula
Pilots get 10% up to 2.5B and 20% of everything beyond 2.5B
FAs get 10% up to last years profit and 20% of everything beyond. This was 1.34B last year
all other (as far as i know) get 10% up to 6.9% Profit Margin and 20% of everything beyond. This would be $3.415B

Additionally, the $3.387B is almost certainly not the number for profit sharing. There are many things that are taken out before that number is generated that are actually included in the profit number for our calculations.

Fortunately, the earnings numbers do show the total pool available for all employees this year. That number is $681M

Everybody gets the same percentage before $1.34B and beyond $3.415, but in between we are all different. In order to fully reverse engineer this back to each groups number you would need to know what percent of the total company wide compensation each group represents.

Lets pretend that FA's represent 20% of eligible earnings and pilots represent 35%.

profit sharing below $1.34B = 134 Million
between $1.34B and $2.5B = 116 Million + 23.2 Million extra for the FAs (since they are at 20%)
Between $2.5B and 3.415B = 91.5 Million + 18.1 Million extra for the FAs and 32 Million extra for the pilots.
That brings us to 414.8 which leaves us with 266.2 remaining above the old threshold of 6.9% .

That would then calculate to a total profit for profit sharing purposes of around $4.75B

Then you take into account that we have many more employees eligible for profit sharing and their earnings are higher. In the earnings release it shows a 28-29% increase in total salaries across the company. If we assume this increase is proportional in the total eligible pool (hopefully less) then my further reverse engineering says that would then translate into:

5.9% for other employees
6.8% for pilots
7.9% for FAs

That is based on a metric crapton of assumptions and I hope it will be a little higher, but for the next 24 hours I am sticking with it!