It's Just Math - I AM - International Transport Workers' Federation
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IDELTA
AM
Claim your wings.
It’s Just Math.
Numbers don’t lie. We deserve better.
Dear Delta Flight Attendant Colleague, This guide focuses on the financial health of our airline, our many contributions to that success, and our unjustifiably weak compensation. Delta Air Lines is the industry’s most financially sound carrier. We are the nation’s most productive Flight Attendants, yet we are not being fairly compensated for working the hardest. Sharing in the success we help create is a core value of the IAM Delta campaign. When we vote to join the most powerful and well-resourced airline union in the world—the IAM—Delta Flight Attendants will negotiate a contract that represents our interests and our service to this company. Stable working conditions that improve our quality of life. The end of arbitrary discipline. Better, more affordable health insurance. A verifiable sick leave policy. Genuine retirement security. All are real job protections we can write into our first IAM contract. IAM Delta activists are extremely proud of our award-winning company and our contribution to the Delta brand. Delta Flight Attendants are a talented, diverse, creative, dynamic, and intelligent group of professionals who will negotiate the premier contract in the skies. The industry’s best deserve nothing less. In Solidarity, Alex Jenkins, Gabe Perez, Victoria DaLeo, Charlie Rodgers, Julianna Helminski, Bob Cannatelli, Elisabeth Joyce, Masayo Tyner, Cynthia Allen, Christine Scarnati, Jack Gazis and Spencer Hayes The information in this pamphlet is sourced from Massachusetts Institute of Technology’s Airline Data Project. Data comes directly from Delta Air Lines in reports to the U.S. Department of Transportation and Securities and Exchange Commission.
Has our income doubled
in the last ten years?
Delta’s has.
2007 2017
DELTA’S INDUSTRY-BEST
$50
FINANCIAL PERFORMANCE
TOTAL ANNUAL REVENUE: DAL
$45 (billions)
Delta
$40 $41.2
$40.4
$35 $36.7
$30 $31.8
$25
$22.7
$20
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PRE-TAX INCOME: DAL, AMR, UAL
(billions)
$8.0 Delta $7.2
$6.6
American Airlines $5.7
$6.0 United
$4.0
$2.5
$2.0 $1.1
$0.0
-$2.0 2013 2014 2015 2016 2017
“As Delta Flight Attendants, • Delta has seen precipitous growth over the
we are critically important to last decade.
the amount of revenue that is • Through organic revenue growth and mergers
generated by our airline and and acquisitions, Delta has doubled in size since
its profitability. Delta Air Lines 2007.
is a leader in service, and we
are the frontline employees • Delta is the most profitable of the major domestic
delivering it. Delta customers airlines and is currently experiencing the most
are loyal because of Delta profitable period in its history.
employees, and we take great pride in that fact.” • Over the last five years, Delta has produced more
— Lisa Seibert (right), Delta Flight Attendant pre-tax income than American and United,
combined.
Have we been able to cut our debt? Delta cut theirs.
DELTA SLASHES DEBT
LONG-TERM DEBT: DAL
(billions)
15 1000
$969 Delta
$828
12 Interest Expense 800
(millions)
$650
9 600
$396
6 400
3 200
0 2010 2011 2012 2013 2014 2015 2016 2017 0
“It’s really important that • Delta
has been using cash to aggressively
our airline is managed well. pay down debt.
Paying down debt decreases •O
ver the last decade, Delta has retired more
interest costs and adds to the than $10 billion in debt.
bottom line. The question that
we should ask ourselves is: •W
hen companies reduce leverage, they decrease
Are Delta Flight Attendants their interest expense and investment risk.
sharing appropriately in the •D
elta has more than halved their interest expense
great success of our airline?’’ since 2010 and recently earned an investment-
— Kevin Hughes, Delta Flight Attendant grade balance sheet rating from Moody’s.
• O
nly ALK and LUV share this distinction.
Have we received
our fair share?
Stockholders got theirs.
SHAREHOLDERS ARE THE PRIORITY. PERIOD.
TREASURY STOCK REPURCHASE: DAL
(billions)
$3.0
Delta $2.6
$2.5
$2.2
$2.0
$1.7
$1.5
$1.1
$1.0
$0.5 $0.3
$0.0
$0.0 2012 2013 2014 2015 2016 2017
Delta’s success is certainly • 2018 marked the 22nd consecutive dividend
important, but the and the 5th consecutive annual dividend increase.
employees who produce • Delta paid nearly $1 billion in dividends in 2018.
that success should be
compensated appropriately. • Delta has spent $7.9 billion in share repurchases
Delta executives say our since 2012.
flight attendants are the • Share repurchases take outstanding shares off
best in the industry. I agree. the market and inflate the stock price.
I also believe we should be • Current share repurchase authorization has
the best compensated, compared to our peers.” almost $3.5 billion remaining, which is expected
— David Bachman (left), Delta Flight Attendant to be complete by mid-2020.
Will someone else
pay our rising bills?
Someone else will pay Delta’s
Hint: If we aren’t
careful, it’s us.FUEL. RISING.
JET FUEL PRICE INDEX (2000 x 100)
300
250
200 Nov.-17 Dec.17 Jan.-18 Feb. Mar. Apr.
SOURCE: Platts
“My co-workers ask me all • Delta’s fuel costs were up 35% in 3Q 2018.
the time, why do we need a •D
elta projects fuel costs will be up 30%
contract? I tell them we need in 4Q 2018.
a contract because we need
to protect what we have • T hese additional costs will require increased
today and build into the revenue and decreased non-fuel expenses
future. With fuel costs on the to offset.
rise, management will look to •A
n example of a decreased “non-fuel” expense
cut costs. Without a contract, would be delaying our pay increase until
anything we have today can be gone tomorrow.” 10/1/19 or reducing flight attendant staffing
— Bob Cannatelli, Delta Flight Attendant on a particular aircraft type.Why were we
awarded bronze?
We placed first.PRODUCTIVITY: DELTA FLIGHT ATTENDANTS
LEAD THE INDUSTRY
PRODUCTIVITY MEASURES: FLIGHT ATTENDANTS PER AIRCRAFT - 2017
American 7.4
United 7.3
Delta 6.6
Southwest 6.4
5 5.5 6 6.5 7 7.5 8
• On average, there are fewer Delta flight attendants per aircraft than at American and United.
PRODUCTIVITY MEASURES: PASSENGERS PER FA - 2017
United 5,020
American 5,709
Delta 7,016
4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500
• O
n average, Delta flight attendants see thousands more passengers per year than
their legacy counterparts.
“Not only are we providing the best service in the airline industry, but we are doing it
with fewer flight attendants than our peer group. Management’s strategy is to squeeze
every bit out of us to maintain their competitive edge. A contract would change this.
Our quality of life would improve and we’d get paid fairly, based upon our industry-
leading productivity.”
— Elisabeth Joyce, Delta Flight AttendantWhat does $4,000
a year buy?
Seventeen weeks of groceries.
Or whatever our
families need most.DELTA FLIGHT ATTENDANTS LAG THE INDUSTRY
IN WAGES AND BENEFITS
AVERAGE WAGES AND SALARIES: FLIGHT ATTENDANTS - 2017
$65,000
$62,500 $62,461 $62,366
$60,389
$60,000
American
United
Southwest
$58,341
$57,500
Delta
$55,000
• D elta flight attendants wages and salaries are lagging behind the industry.
• Now ranked 4th in peer group.
PRODUCTIVITY MEASURES: PASSENGER REVENUE PER FA - 2017
(millions)
$1.4
$1.36
$1.34
$1.3
$1.23
Southwest
Delta
$1.2
$1.15
United
Amer-
$1.1
ican
$1.0
• D elta spends, as a % of Revenue, far less on wages and benefits than its peers.
• 28.6% UAL/AMR average vs Delta’s 25.3%.
“We work more hours, see more passengers, and generate more revenue than
the flight attendants at other carriers and we do it with fewer flight attendants
per aircraft...surely we must be the highest paid flight attendants in the industry?
Unfortunately, we do not have the highest wages and salaries in the industry.
We will fix that with a contract.”
— Victoria Daleo and Cindy Allen, Delta Flight AttendantsWill joining a union really
make a difference?
Yes, its like apples and oranges.PRODUCTIVITY: DELTA UNION PILOT
EXPERIENCE IS VERY DIFFERENT
Passengers per Pilot Delta 11.5
(millions/year) UAL/AMR/SWA Avg 13.4
ASMs per Pilot Delta 17.9
(millions/year) UAL/AMR/SWA Avg 19.7
10 11 12 13 14 15 16 17 18 19 20
Delta 40.7
Block Hours per
Pilot (average) UAL/AMR/SWA Avg 47.8
40 41 42 43 44 45 46 47 48 49 50
• D
elta pilots see fewer passengers, work fewer block hours and fewer ASMs than their
counterparts at other carriers.
AVERAGE TOTAL COMP PER BLOCK HOUR: Pilots & CO-PILOTS - 2017
$700
$610
$600
$591
$560
American
Delta
United
$484
$500
South-
$400 west
• U
nionized Delta pilots earn, on a per block hour basis, significantly higher average wages and
benefits than their peers at other carriers.
• This is the exact reverse of the Delta Flight Attendant experience.
“All of us should ask ourselves one simple question: How can it be that we are not
the highest paid flight attendants in the airline industry when we are the most
productive and work for the most financially successful airline in the world? The answer
is simple: We don’t have a legally binding contract and the right to negotiate.”
— Kody Ondriezek, Delta Flight AttendantWHAT’S NEXT:
CONTROL AND THE SQUEEZE
Visit IAMDelta.net for more information.
“It’s never been more evident • S hareholders will continue to demand increasing
than it is now that we need returns from Delta.
representation. Not only can • In an environment with rising fuel costs, that
we negotiate what we’re means continuing to pay down debt, increase
worth, but we will be able to dividends, repurchase shares and decrease or
protect what we have. Now’s limit its “controllable costs,” like employee
the time.” wages and benefits.
— Alex Jenkins, • D
elta will look to limit or reduce your wages,
Delta Flight Attendant benefits, and working conditions to improve
shareholder value.I AM YES, I w
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HAND
WRITI
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The numbers show that Delta can afford to treat flight attendants fairly,
but the only way to guarantee this is with an IAM contract. As the most
productive employees in the business, we deserve better.
Higher wages, fair work rules and a voice in the process are only a
signature away. Sign your IAM A-Card today!IDELTA
AM INTERNATIONAL ASSOCIATION OF
MACHINISTS AND AEROSPACE WORKERS
9000 Machinists Place
Upper Marlboro, MD 20772-2687
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