American Airlines bringing back profit-share program
Monday, 24 Mar, 2016
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American Airlines is bringing back profit-sharing for its 100,000-plus workforce beginning next year.
The airline said it would offer a program to pay 5% of pre-tax profits based on its 2016 annual results for all workers below certain management positions.
"We are taking this step because we have heard from many of you that a profit-sharing plan is important to our success as a team," Doug Parker, American’s chief executive told employees.
"Although we continue to believe the most effective way to increase compensation is through higher base pay, we recognize there is a team-building component to profit-sharing."
American Airlines spokeswoman Leslie Scott said more than 80% of American employees will be eligible.
The airline has always favored paying a higher base salary rather than profit sharing, and said the program’s return will not impact any pay negotiations which are currently ongoing.
The old American Airlines had a profit-sharing program prior to its bankruptcy and subsequent merger with US Airways, but hadn’t paid out for many years as it wasn’t a profitable business.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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