Delta Air Lines CEO Talks Profit Sharing, Travel Demand

Delta Air Lines plane

Delta Air Lines CEO Ed Bastion appeared on CNBC to talk about profit sharing with employees and also penned an open letter to government and community leaders about financial solvency.

Delta paid out $1.4 billion in profits to employees who participated in the program.

In the letter, he called it ‘extraordinary.’

Bastion said the total amount for each employee would be about 10 percent of their yearly salary.

“It’s something we do every year on Valentine’s Day to demonstrate our gratitude and love for our people, who serve our customers and ensure their safety and comfort every day,” he wrote.

Since initiating the profit-sharing program in 2007, Delta has paid its employees more than $11 billion.

“While we can’t solve the problem for everyone, we wanted to help Delta employees achieve a level of financial security by boosting their savings and financial wellness,” he added.

In an interview on CNBC, he called it an important marker. Bastian is also excited about the future.

“Travel is doing really well,” he said. “We see (strong travel demand) going in a straight line all the way through Labor Day.”

He also said that business travel appears to be strong again, with corporate bookings up 10 percent from the fourth quarter of 2023 to the present. “We’re pretty much back to the overall volume we had pre-pandemic. I don’t see any slowdown at all. I see companies returning to the office.”

Realistically, he also believes the Boeing 737 Max 10 will be delivered later than expected. The planes were scheduled to be supplied to Delta in 2025, but the airplane manufacturing company is clearly having difficulties right now.