Some employees had raised concerns about the unequal profit sharing formula between pilots and other employees -- particularly as Delta's profits declined slightly in 2016 compared with 2015, yielding a smaller profit sharing payout to employees in February 2017.
In a Wednesday internal memo, Delta CEO Ed Bastian wrote that the shift back to a single profit sharing plan is in response to feedback from employees.
“You’ve made it clear that this change didn’t align with our one-team culture and it didn’t feel like Delta -- and you are right,” Bastian wrote to employees.
He added that “the recent challenges with severe weather and natural disasters proved once again that Delta’s culture and the spirit of our people are no match for even the fiercest of storms.”
The change in profit sharing formula is expected to decrease earnings, all other things being equal, according to a note to investors from J.P. Morgan analyst Jamie Baker.