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In reality, Delta Airlines uses a graduated first-dollar-of profits formula (although it's exact cutoffs vary year to year). In recent years, Delta Airlines pilots have
In reality, Delta Airlines uses a graduated first-dollar-of profits formula (although it's exact cutoffs vary year to year). In recent years, Delta Airlines pilots have earned approximately 15% of their annual salary whereas American Airline pilots have earned approximately 2%. Typically, airlines generate revenue primarily through ticket sales; their primary cost (outside of employees) is fuel. Therefore, airlines generate profit primarily through ticket sales minus their fuel costs.1. How does the external environment influence company profits (and by extension, how much money the employee earns under their profit-sharing plan)
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