Delta raises employee pay 5% as demand for air travel rebounds

Delta Air Lines Inc. is raising the pay of non-union employees by 5% as US carriers bask in an air travel rebound that has held steady despite growing uncertainty about the economy and consumer spending.

The move includes an increase in base pay for ground and flight-attendant workers worldwide, along with additional compensation for certain other employees based on merit, Delta Chief Executive Officer Ed Bastian said in an internal memo Tuesday. The pay hike, effective April 1, excludes “those covered by an industry or government requirement or collective bargaining agreement,” he said.

The move is the latest by domestic airlines to raise pay or expand their workforce as the industry recovers from a deep slump in demand early in the pandemic. Bastian cited a rebound in profits for the increased payout, which follows a 4% raise last year.

Pilots, the only major organized work group at Delta, are currently voting on a tentative agreement that provides 34% in cumulative raises over four years.

Delta shares fell less than 1% at 2:37 p.m. in New York.