(Reuters) -Delta Air Lines Inc said on Tuesday that it would bump up the pay of its employees by 5%, amid an industrywide shortage of workers as airlines look 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 steps 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, which will be effective from April 1, comes at a time when airlines are coming up with attractive pay offers to retain workforce and add staff after a faster-than-expected rebound in the U.S. travel market.
The carrier offered a 34% cumulative pay increase last month to 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 hike includes all employees worldwide, except those covered by an industry or government requirement or collective bargaining agreement.
Shares of Delta were down nearly 2% in afternoon trade.
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(Reporting by Nathan Gomes and Kannaki Deka in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)