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Delta Air Lines’ CEO has declared there is ‘no possibility’ of the carrier’s pilots striking during the crucial holiday travel season – days after its pilot union voted to approve a potential mass walkout as it negotiates a new contract.
The brazen assertion was made on national television Monday by Ed Bastian, who appeared on ‘Today’ for an interview with anchor Hoda Kotb to discuss the state of his embattled company.
Just a week earlier, Delta pilots represented by the Air Line Pilots Association (ALPA) voted to authorize a strike, if necessary, to get better pay and benefits, amid talks that began in 2019 but were paused for nearly two years because of the pandemic.
Bastian on Monday assured prospective travelers that Delta’s pilots won’t strike during the holidays.
‘There is no possibility they could strike at Thanksgiving, Christmas or anytime,’ Bastian, 65, confidently said when asked about the development concerning his nearly 15,000 pilots, dismissing the move as a ‘tactic’ amid still ongoing negotiations.
Delta Air Lines’ CEO Ed Bastian said Monday there is ‘no possibility’ of the carrier’s pilots striking during the crucial holiday travel season – despite its pilot union voting to approve a potential mass walkout last week
The brazen assertion was made on national television Monday by Bastian, who appeared on ‘Today’ for an interview with anchor Hoda Kotb to discuss the state of his embattled company
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‘Not Christmas?’ Kotb, seemingly in disbelief, went on to ask the executive.
‘No, absolutely not,’ Bastian responded, adding that he was already in talks with union organizers via a mediator and that ‘we are actually a lot closer than people like to think’ to getting a deal done.
Delta pilots in the ALPA, however – the largest airline union in the world – seemed unconvinced by Bastian’s claims, and even took to Twitter immediately after to directly fact-check the CEO.
‘CEO Ed Bastian got it wrong,’ the tweet from the Delta Air Lines Pilots Twitter account began, before asserting that members are, in fact, set to strike.
‘The law of the U.S. allows unions to strike, and the #DeltaPilots are #ReadyToStrike,’ the post read. ‘The ball is in management’s court to get this contract done.’
Pilots for US carriers such as Delta and rivals like American and United in recent weeks have revamped picketing efforts at at major airports across the country to demand better contracts as the industry returns to profitability.
Just last month, Delta Air Lines revealed it earned a whopping $695million profit for the third quarter despite having one of the most difficult summer travel seasons in history, when it struggled to keep up with resurging demand.
Just a week earlier, Delta pilots represented by the Air Line Pilots Association (ALPA) voted to authorize a strike, if necessary, to get better pay and benefits, amid talks that began in 2019 but were paused due to the pandemic. Pictured are pilots protesting in Georgia in June
That demand, Bastian said upon announcing the enormous earnings, is expected to persist on into the fourth quarter – typically one of the airline’s busiest, as millions of citizens take to the air to be with their loved ones for the holidays.
The pilots are fighting for amendments to an old contract that would see them garner increased pay and better benefits.
If successful, the efforts would boost the pay of pilots by more than 14 percent – a move that some financiers warn could set the stage for similar wage hikes across the industry.
Under federal law, pilots cannot go on strike until the National Mediation Board, the federal body Bastian had been referring to when he mentioned a mediator, declares an impasse in negotiations.
After another 30-day cooling-off period, only then would the union be able to strike – that, or Delta brass can enforce a lockout, which would hopelessly hamper Americans’ prospective travel plans.
If successful, the efforts would boost the pay of pilots by more than 14 percent – a move that some financiers warn could set the stage for similar wage hikes across the industry
As of Monday, the National Mediation Board has made no such declaration – but despite this, Bastian, who gushed late last month about the upbeat earnings release, seemed adamant when speaking to Kotb, 58, that things would be solved long before then.
Thanksgiving, meanwhile – the most traveled holiday, with more than 81 percent of Americans taking to the road or air to see relatives – is a little more than two weeks away.
‘We are in mediation with the National Mediation Board, and there are many phases and stages you have to go,’ Bastian said Monday to Kotb, who appeared somewhat skeptical in the face of the CEO’s remarks.
Delta pilots in the ALPA, however – the largest airline union in the world – seemed unconvinced by Bastian’s claims, and even took to Twitter immediately after to directly fact-check the CEO
Bastian would then add: ‘We are actually a lot closer than people like to think in terms of trying to get this deal done, hopefully soon.’
Labeling his pilots’ protest threats as nothing more than a ‘tactic,’ Bastian asserted that Delta – the nation’s most popular airline – possesses the best pilots in the nation, and thus, they are aptly compensated with the best wages in the industry.
Pilot pay at the airline ranges from $64,000 per year for a new first officer, and caps at $257,000 per year for a senior captain. Other airlines offer similar if not nearly identical wages for the most part – and for thousands of them, it seems, it is not enough.
Delta’s pilot union is one of several that have looked to capitalize on a severe staffing shortage that surfaced during the pandemic and has since persisted, to increase their compensation and benefits.
‘It’s a tactic that all the unions, in fact I should say all the airline unions, pilot unions, have deployed,’ Bastian continued during the live broadcast from Manhattan.
‘But the reality is that we have the very best pilots, they already are the very best compensated, we’re going to make sure they stay the best compensated, so there won’t be any issue.’
Pilot pay at the airline ranges from $64,000 per year for a new first officer, and caps at $257,000 per year for a senior captain. Other airlines offer similar if not nearly identical wages for the most part – and for thousands of them, it seems, it is not enough. Bastian dismissed the vote as nothing more than a ‘tactic’ to get more from the ongoing negotiations
Delta last ratified their pilots’ contracts in 2016, with renegotiation beginning back in April 2019.
The pandemic would then throw a monkey wrench into those plans for the better part of two years, with some refrain finally arriving this year as restrictions loosened and citizens reverted back to their previous lifestyles – with many returning to the jet set.
The airline industry then saw much of their business return almost all at once – but they have also failed to re-staff to pre-pandemic levels.
Delta was no different, recording a $695 million profit for the last financial quarter – despite struggling with resurging demand.
The upbeat earnings release – which covered a span of time that saw thousands of delays and cancellations for understaffed carriers – is somewhat misleading, as it came after the company hiked airfares as much as 30 percent to offset losses incurred during the pandemic.
Thanksgiving, meanwhile – the most traveled holiday, with more than 81 percent of Americans taking to the road or air to see relatives – is a little more than two weeks away
The impressive sum – the all-time highest revenue performance for a quarter in the company’s nearly 100-year history – served as a much-needed, and somewhat anticipated, bright spot for Delta, which saw its earnings dwindle in 2020 and 2021 when it received $5.4billion from the federal government to stay afloat.
These facts were not been lost on members of Delta’s pilot union, who have since demanded a piece of that pie after outlasting their comrades who walked out for good as business slowed to a virtual standstill during the pandemic.
‘Despite a strong recovery and significant profits, airlines continue to ignore the simple reality that their business plans won’t fly without the pilots onboard,’ the union said in a scathing statement last week as it voted to allow a potential protest.
‘Many pilots are still working under contracts negotiated years ago, long before the world was disrupted by COVID-19. Returning to a pre-pandemic mindset is an unwise business choice and ignores the reality of the changing work world.’
Earlier this year, the airline industry then saw much of their business return almost all at once – but they have also failed to re-staff to pre-pandemic levels
However, Captain Jason Ambrosi, chair of the Delta master executive council of the Air Line Pilots Association, has remained hopeful that the group can come to an agreement with airline brass – but has also stayed firm in regard to the union’s demands.
‘Our negotiations have dragged on for too long,’ Ambrosi said after announcing the committee’s decision, eventually adding, ‘Our goal is to reach an agreement, not to strike.’
‘The ball is in management’s court,’ the pilot continued. ‘It’s time for the Company to get serious at the bargaining table and invest in the Delta pilots.’
Delta, meanwhile, has remained steadfast that the successful vote won’t affect its operations – particularly during the busy holiday season – citing in a statement after the vote that the carrier and union have made ‘significant progress’ in their talks, echoing Bastian’s later on-air assertions.
‘ALPA’s stated purpose for the vote is simply to gain leverage in our pilot contract negotiations, which continue to progress under the normal process set by the Railway Labor Act and in partnership with the National Mediation Board,’ the airline said in a statement.
‘We are confident that the parties will reach an agreement that is fair and equitable, as we always have in past negotiations.’
Meanwhile, pilots from other organizations such as Alaska Airlines, Southwest Airlines, American Airlines, and United Airlines have followed their competitor’s example, staging protests at airports in hope of capitalizing on the tenuous situation.
The pilot shortage has become the newest flashpoint for anger against the embattled industry, as airlines continue to face backlash over a mass cancellations and reports of poor service
The negations come as the airline reported resurging business in recent months, after seeing earnings fall in 2020 and 2021 when it received $5.4billion from the government to stay afloat
The shortage has subsequently become the newest flashpoint for anger against the embattled industry, as airlines continue to face backlash over a mass cancellations and reports of poor service.
Despite that, Bastian last month said that demand is strong – despite an 18 percent drop in passenger traffic – and that staffers would be ready for the anticipated rush come the holidays.
‘Reliability is back,’ the exec said. ‘Our team has done the yeoman’s work in terms of getting the quality of service back that customers come to expect.’
Meanwhile, the average passenger paid, on average, 23 percent more per mile than during the same months in 2019 – and often closer to 30 percent. Revenue from premium customers rose, while money from the main cabin decreased marginally.
Bastian said he expects earnings per share, currently at 79 cents, to hit $1 to $1.25 in the fourth quarter, and revenue topping a marker met in 2019 by 5 to 9 percent – a sign higher airfares will stay firm.
The company has said there is ‘no indication’ that anxiety over inflation and the economy will discourage people from traveling over the holidays
He attributed the ‘tremendous demand’ to business performance to a shift of consumer dollars from goods to services.
‘Consumers are prioritizing investing in themselves, experiences and services, rather than buying things,’ Bastian said of the return to travel, adding that the company has even ceased hiring despite rumors that it is still short-staffed.
With that said, the CEO still asserts that he sees ‘no indication’ that anxiety over inflation and the economy will discourage people from traveling for Christmas and now looming Thanksgiving, which by far are the two most traveled holidays.
Delta’s $695 million profit is below the $1.5 billion the airline reported in the same quarter of 2019, before the pandemic.
Airlines use 2019 as a more reliable comparison for typical business operations because the pandemic had such an outsize effect on travel over the past three years.
The recent rise in air travel came as thousands of flights were cancelled and delayed over the summer as airlines contend with staffing issues and poor weather. The carrier has since said that cancellations are a thing of the past, and staffers are ready to welcome holiday travelers
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