Delta Air Lines Inc said on Tuesday it would bump up the pay of its employees by 5% due to an industrywide shortage of workers as airlines try to cash in on robust demand for air travel.
Delta's raise includes a 5% base pay increase for ground and flight attendant employees worldwide at all levels of the pay scale and a 5% pool for eligible merit employees worldwide, the airline's chief executive Ed Bastian wrote in a memo to employees.
The pay hike will be effective April 1, at a time when airlines are coming up with attractive pay to retain employees and add staff after a faster than expected rebound in the U.S. travel market.
The carrier offered a 34% cumulative pay increase to its pilots over three years in a new contract after the pilots of the Atlanta-based carrier voted to allow a strike in October.
The hike covers all employees in the world except those covered by an industry or government requirement or collective bargaining agreement.
Delta's shares were down nearly 2% in the afternoon.