American Airlines to Offer Employees Profit-Sharing

By Paul Riegler on 24 March 2016
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DSC_0514 (1)American Airlines, which was the only airline among the top four in the U.S. not to offer its employees profit sharing, has reversed course.

The company, the world’s largest airline, had been steadfast in its resolve not to offer its employees profit-sharing although it gave them significant raises following its 2013 merger with US Airways.

The profit-sharing program will pay 5% of pretax profits to non-management employees based on this year’s earnings.

“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,” said Doug Parker, the company’s CEO, in a memo to 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.”

(Photo: Accura Media Group)

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