London British Airways (BA) has introduced profit sharing bonuses for the first time for cabin crews and ground staff. The move is part of a newly approved three-year pay transaction, guaranteeing a 10.5% increase in salary for thousands of employees.
Supported by more than 86% of workers in recent votes, the deal guarantees immediate wage increases and a minimum bonus of £1,000. Profit sharing is tied to the airline’s annual operating profit margin, and Pyok reported that the maximum payment is a 4% payment if performance targets are met.
British Airways profit sharing bonus
British Airways (BA) employees will benefit from the profit sharing schemes previously reserved for senior management and pilots.
Under the new three-year pay agreement, employees will receive an immediate 4.5% salary increase and receive a 3% salary increase in 2026 and 2027.
This structured increase aims to provide financial stability and reward employee contributions.
Additionally, the contract includes a profit sharing bonus of a minimum of £1,000, which can be up to 4% based on operating margins.
This incentive will align employee compensation with airline financial performance to drive productivity and efficiency.
The transaction also includes adjustments to inflation that ensure wages remain competitive in the event of significant changes in the economic situation.
This provision protects employees from potential declines in real wages due to increased costs of living.
Airline’s parent company IAG recently reported that British Airways achieved an operating profit margin of over 20% in the third quarter, positioning it as the leading profit driver within the group.
Historically, British Airways has faced tensions with frontline employees beyond wages and working conditions.
The introduction of profit sharing is seen as an important step in improving employee relationships and ensuring stability for at least the next three years.
Despite this positive development, former mixed fleet cabin crews hired at lower salaries claim that the new wage structure has not progressed enough to close the pay gap with their veteran colleagues. .
You need to read: British Airways Cabin Crew Salary 2024
British Airways is compared to other airlines
British Airways’ new bonus system is a step ahead, but it’s lagging behind its competitors.
Delta Air Lines (DL) offers a 10% profit sharing bonus to most employees and sets a high benchmark within the industry.
United Airlines (UA) offers flight attendants a 5.3% bonus, further surpassing British Airways’ offers.
Meanwhile, American Airlines (AA) and Southwest (WN) recently announced a 1.1% bonus, offering British Airways ahead of these carriers, but are still behind industry leaders. .
Other global carriers such as Singapore Airlines (SQ), Emirates (EK), and Cathay Pacific (CX) also provided profit sharing bonuses to all employees.
I’m looking forward to it
The new agreement shows a change in UK Airlines’ approach to employee compensation and recognizes the contributions of flight attendants and ground staff.
As airlines continue to rebuild post-pandemic, profit sharing incentives could play a key role in maintaining workforce morale and performance.
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