Wednesday, February 17, 2016

Raise your hand if you paid for the bonus to Delta employees

If you flew on a Delta jet last year, you should feel proud. The airline just handed out $1.5 BILLION in bonuses to its employees to mark its record profits in 2015. You helped pay for it.

That’s the equivalent of a 21 percent pay boost for the “average” Delta employee. You can bet a big chunk went to Delta executives—for example, outgoing CEO Richard Anderson hauled in more than $17.5 million last year.

The thing is: airlines’ record profits last year were largely based on the steep decline of jet fuel prices. In 2014 jet fuel averaged about $2.70 per gallon, and that price dropped to an average of $1.52 per gallon last year—in fact, jet fuel was selling for about $1.09 in December, that’s 60 percent lower than the average 2014 price.

Think about Delta’s ticket pricing last year. Did you see any big price reductions? A big chunk of what you paid for your flight went into that $1.5 billion bonus pool.

Did you get any free peanuts or anything? How about the leg room, everything OK there?

Copyright © Richard Carl Subber 2016 All rights reserved.

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