American airlines reverses course, offers employees profit sharing

American Airlines, in a striking reversal, said it will offer profit sharing to its employees, reversing CE Doug Parker's long-standing belief that profit sharing is an unreliable way to compensate workers. The announcement came Wednesday afternoon in a letter to employees from Parker and president Scott Kirby. The reversal in policy seems to reflect Parker's recent effort to repair a culture that pilots have described as "toxic." At a March 8 investor presentation, Parker declared that airline management has changed now that the industry seems to have achieved a state of generally reliable profitability. The letter said American Airlines is establishing a profit-sharing program effective with 2016 annual earnings, which is considered to be extremely likely, although it is not assured. <br/>