Delta Air Lines Bombardier Boeing 757-200 aircraft as seen arriving, on final approach for landing at JFK John F. Kennedy International Airport in New York.
Nicolas Economou | NurPhoto | Getty Images
Delta Air Lines, which received billions of dollars in federal aid last year, is paying executives bonuses ranging from a few thousand dollars to more than $ 100,000 to make up for compensation at the start of the pandemic last year.
Frontline workers such as flight attendants, pilots and others in non-management positions do not receive bonuses.
Last year, Delta’s executive pay cut and also reduced thousands of working hours by 25% to withstand the pandemic’s decline in travel demand, a policy criticized by some lawmakers. The Atlanta-based airline avoided involuntary plans or job cuts, thanks in part to the 18,000 employees, about 20% of Delta’s staff before the pandemic, which last year accepted buyouts and packages for early retirement. The carrier achieved a record loss of $ 12.4 billion in 2020.
‘Although all Delta people have been affected by the worst year in our history, after a comprehensive salary assessment of all levels in our organization, we have identified below the level of executives, but we have identified levels that have been excessively affected due to the events last year and a one-time adjustment payment made, “Delta said in a statement.
Delta received $ 5.6 billion in federal aid last year as part of a $ 25 billion program passed as part of the CARES law in March that bans airlines from downsizing. The carrier expects to receive $ 2.9 billion this quarter as part of the extension of the program that Congress passed late last year, Delta said in a submission last month.
The pilots’ union criticized the move, which was first reported on Sunday, by the Wing travel blog, saying it was contrary to the spirit of the CARES law, federal wage support that airlines received last year in exchange for not involuntarily did not cut.
“While we are confident that Delta will recover quickly once the country comes through the pandemic, the payment of special bonuses to management while the airline is still burning cash is premature and inappropriate,” said Chris Riggins, spokesman for the Air Line Pilots Association. , said. in a statement. “We also believe that the payment of bonuses limited to management is not contrary to the spirit of the CARES Act. It was an unfortunate and short-sighted decision.”
Delta says it follows the provisions of the CARES Act, which placed limits on remuneration of top executives. Managers’ remuneration may vary depending on the performance of the company. Delta says it has continued to pay rewards to frontline and other employees for achieving operational targets, but the amounts are lower than the bonuses.
The carrier and its U.S. competitors are on track to receive additional federal payment assistance.
On Friday, the House passed a $ 1.9 billion coronavirus relief package that includes a third-round federal payroll support for airlines. If the bill passes by the Senate, US airlines would receive $ 14 billion in return for keeping workers paid until September 30. U.S. airlines have already received $ 40 billion in wage support in two other coronavirus virus relief packages.