Delta Airlines employees to get 5% pay rise amid strong travel demand

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February 7 (Reuters) – Delta Air Lines Inc. DAL.N said on Tuesday it would raise pay for its employees by 5%, amid an industry-wide labor shortage as airlines seek to take advantage of strong demand for air travel.

Delta’s increase includes a 5% base pay increase for ground and flight attendants worldwide at all pay scale stages and a 5% pool for eligible merit employees worldwide, the airline’s chief executive, Ed Bastian, wrote in a memo to employees.

The wage hike, which will take effect April 1, comes at a time when airlines are offering attractive wage deals to retain workers and add staff after a faster-than-expected rebound in the U.S. travel market .

The carrier Free a 34% cumulative pay rise last month for its pilots over three years in a new contract after the Atlanta-based carrier’s pilots voted overwhelmingly in October to authorize a strike.

The latest increase includes all employees worldwide, except those covered by an industry or government requirement or a collective agreement.

Shares of Delta were down nearly 2% in afternoon trading.

(Reporting by Nathan Gomes and Kannaki Deka in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)

((Nathan.Gomes@thomsonreuters.com;))

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