British Airways (BA) has introduced a profit-sharing bonus for cabin crew and ground staff for the first time. The move is part of a newly approved three-year pay deal that ensures a 10.5% salary increase for thousands of employees.
This agreement, supported by over 86% of workers in a recent ballot, guarantees an immediate pay rise and a minimum bonus of £1,000.
Profit sharing will be tied to the airline’s annual operating margin, with a maximum payout of 4% if performance targets are met.
British Airways (BA) employees will now benefit from a profit-sharing scheme previously reserved for senior managers and pilots.
Under the new three-year pay agreement, employees will receive an immediate 4.5% salary increase, followed by 3% raises in 2026 and 2027.
This structured increase aims to provide financial stability and reward employees for their contributions.
Additionally, the agreement includes a minimum profit-sharing bonus of £1,000, with the potential for a maximum of 4% based on operating margins.
This incentive aligns employee compensation with the airline’s financial performance, encouraging productivity and efficiency.
The deal also includes adjustments for inflation, ensuring that wages remain competitive if economic conditions shift significantly.
This provision protects employees from potential declines in real wages due to rising living costs.
The airline’s parent company, IAG, recently reported that British Airways achieved an operating margin exceeding 20% in Q3, positioning it as a major profit driver within the group.
Historically, British Airways has faced tensions with frontline employees over pay and working conditions.
The introduction of profit sharing is seen as a significant step toward improving employee relations, ensuring stability for at least the next three years.
Despite this positive development, some former Mixed Fleet cabin crew, who were hired on lower salaries, argue that the new pay structure does not go far enough in bridging the wage gap with veteran colleagues.
While British Airways’ new bonus system is a step forward, it still lags behind competitors.
United Airlines (UA) provides a5.3% bonus for its flight attendants, further surpassing British Airways’ offer.
Delta Air Lines (DL) offers a 10% profit-sharing bonus for most employees, setting a high benchmark within the industry.
American Airlines (AA) and Southwest (WN) recently announced 1.1% bonuses, putting British Airways’ offering ahead of these carriers but still behind industry leaders.
Also, other global carriers such as Singapore Airlines (SQ), Emirates (EK), and Cathay Pacific (CX) gave profit-sharing bonuses to all its employees.
The new agreement signals a shift in British Airways’ approach to employee compensation, acknowledging the contributions of cabin crew and ground staff.
As the airline continues to rebuild post-pandemic, profit-sharing incentives could play a key role in maintaining workforce morale and performance.
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