In response to a general labour shortage faced by the airline industry as it attempts to capitalise on the strong demand for air travel, Delta Air Lines Inc. announced on Tuesday that it would increase employee pay by 5%.
According to a memo from the airline’s CEO, Ed Bastian, the raise at Delta includes a 5% base pay increase for ground and flight attendant employees globally at all pay scale levels and a 5% pool for qualified merit employees globally.
The pay increase, which will take effect on April 1, comes as airlines are making tempting pay offers to recruit new employees and keep existing ones after a quicker-than-anticipated recovery in the U.S. travel market.
After the Atlanta-based carrier’s pilots overwhelmingly decided to authorise a strike in October, the carrier offered a 34% cumulative pay increase to its pilots over three years in a new contract last month.
Except for those covered by industry or governmental requirements or collective bargaining agreements, the most recent increase applies to all employees worldwide.
The price of Delta shares fell by almost 2% in afternoon trading.
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