Employee Incentive Program Helps US Airways Hit Record Profits

by: Nichole Gunn January 5, 2011

With poor airline sector profits and no bright light at the end of the tunnel, the sixth largest airline, US Airways, reported an amazing third-quarter profit. CEO Doug Parker told USA Today Travel that among the factors attributed to the successful record-breaking quarter was its employee incentive program.

Boosting a $240 million profit, which is a significant jump from last year’s $80 million loss, the company will recall furloughed pilots and flight attendants. It also has plans of hiring new employees once the furloughed ones are ‘back in the seat.’

Parker noted that “The past three years have been extremely challenging, and our response has been swift and decisive. He added, “Reporting a record third quarter profit speaks volumes about the efforts of our 31,000 team members."

Along with “reducing capacity, realigning our network to focus on our primary assets, maintaining cost discipline, increasing ancillary revenues, and establishing industry-leading operational reliability," Parker claimed that the company’s employee incentive programs fostered skilled and productive employees who were effective in helping the company attain its success.

The CEO added that US Airways third quarter results also took into account an “an accrual of $25 million for our profit sharing program, and $7 million for operational incentive payouts, bringing the total amount earned in 2010 through these programs to nearly $60 million."

The importance and benefit of fostering loyal and hardworking employees is evident in US Airways’ success. This is especially true for large companies “where individual attention cannot often be given by upper-tier employees.”


About Nichole Gunn

Nichole Gunn is the VP of Marketing at Incentive Solutions, an Atlanta-based incentive company that delivers advanced, agile B2B customer loyalty and channel sales incentives programs.