Use our tool to get a personalized report on your market worth. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. And, Southwest made its announcement just weeks after one its big competitors, Delta Air Lines, which has about 20,000 more employees than Southwest, announced its own profit-sharing numbers: $1.6 . When our employees look back 50 years from now, they will say, Those people saved Southwest, they saved Southwests jobs, that was Southwests finest hour. Kellys a showman like his hero Kelleher. This compensation may impact how and where listings appear. Terms & Conditions. We also reference original research from other reputable publishers where appropriate. Southwest Airlines Loses Another Competitive Advantage - Forbes Based on our research, similar companies to Southwest Airlines are PSA Airlines, Expeditors, and American Airlines. If Southwest exercises all optionsa strong possibility if its growth opportunities match Kellys expectationsit could operate a fleet of almost 1,100 planes in 10 years, an increase in capacity of 50%. For decades, Southwest has been able to expand during crises because of its low costs, then come back stronger, says industry expert Robert Mann. In March, Southwest made the biggest new purchase since the MAX returned to service, raising its firm orders by 100 planes, and on June 7 it cited the faster-than-expected rebound to add another 34 MAX aircraft to its book. We've made recognizing one another easier through our SWAG platform and by celebrating several milestones throughout an Employee's Southwest journey. When business conditions decline, only the strong survive. Ithada thriving hub in Fort Lauderdale, but not a single flight from much larger Miami International to the south. Southwest holds the most cash and carries the lowest debt of the major carriers. So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. The numbers that the Southwest Airlines CEO surveyed in April of last year were unspeakably catastrophic, and he had no indicators to foresee if the pandemic signaled a brief nosedive or a slow-motion crash. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. One of these is Southwest's cancellation policy. Sources of data may include, but are not limited to, the BLS, company filings, estimates based on those filings, H1B filings, and other public and private datasets. Employees have free, unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. answer_1 (2).docx - Running Head: SOUTHWEST AIRLINES 1 We currently don't have any reviews for this employer. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. In Q2 of last year, Southwest suffered an 87% drop inpassenger revenues from $5.5 billion to $700 million, causing a staggering loss of$1.1 billion. Compare. Baggage handler. That pullback allowed Southwest to realize what it had only dreamed ofgrabbing gates at the nations third-busiest airport. Southwest Airlines has set various policies and procedures that make flying with the airline easy. Southwest's main competitors are-American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, and Air France KLM. We were flying around the country with four or five passengers on the737-700 and 800s that carry 143 and 175 passengers,White tellsFortune. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. Another 4,000 to 5,000 chose towork on flexible schedules, and 14,500opted for extended time off, often to supervisetheir schooled-at-home kids. It was a great way to help us offset big fixed costs thatare impossible to cut, says Kelly. I write about airlines and travel to explain this crazy industry. The proxy statement's main purpose is to alert shareholders to the annual meeting and provide them information about the issues that will be voted on during the annual meeting, including decisions such as electing directors, ratifying the selection of auditors, and other shareholder-related decisions, including shareholder-initiated initiatives. perform such additional functions as may from time to time be assigned to the Committee by the Board. As adopted by the Board of Directors of Southwest Airlines Co. on February 2, 2022. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. FORTUNE may receive compensation for some links to products and services on this website. Yes, they still run great sales now and then. After mostly losing its once significant cost advantage and low-fare pricing, Southwest now loses a feature that has been valued more by business travelers than leisure travelers. The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. By contrast, the global industry lost 400,000 workers, and American alone laid off 32,000. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. None of the information on this page has been provided or approved by Southwest Airlines. The Southwest Airlines just like any other business has its share of the risks and uncertainties that it faces. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. $18.45 per hour. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. The Committee shall consist of at least two members of the Board, each of whom shall meet applicable independence requirements of the New York Stock Exchange. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. Though most of the markets were small, Kelly figured that adding a lot of them fast would enable Southwest to expand more rapidly than under the original plan, where it would move slowly and deliberately by adding a couple of new airports a year. Delta Air Lines 2. The amount of time off varies depending on your workgroup and years of service. In Chicago, Southwest had longbeen the dominant carrier in Midway. Other roles at Southwest Airlines include manager, custom support and services and cashier. It plans to replace the fast-retiring 700s with two MAX models: the MAX 8 at 175 seats, and the smaller MAX 7 that boards 143. They allow a customer to cancel a. But behind the Churchillian fervor is a solid plan to do once again what Southwest has always accomplished coming out of a crisisto soar while rivals are still revving on the tarmac. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. Many of the folks flying Southwest are regular customers from such hubs as New Yorks LaGuardia and Midway who vacation or do business in Miami, but couldnt fly there on their favorite carrier and didnt want to get stuck in traffic driving south on I-95 from Fort Lauderdale. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. We had to keep flying to take passengers like that doctor, plus we were carrying medical supplies, he says. The starting pay at Southwest Airlines is $19,000 per year, or $9.13 per hour. Southwest Airlines scored higher in 9 areas: Overall Rating, Culture & Values, Work-life balance, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook. Employees enjoy time off for personal use, vacation, or for the care of themselves or a loved one. Company reviews. One of these is Southwest's cancellation policy. He curbed such capital expenditures as tech investments and airport expansions. These include white papers, government data, original reporting, and interviews with industry experts. The Board shall appoint one member of the Committee as chairperson (Chair) of the Committee. Employee Focus One of Southwest's competitive advantages is its focus on its employees. Our Career Mobility Center helps Employees proactively prepare for internal career opportunities through services like individual career advising sessions, interview preparation resources, and virtual days in the field. In that same year, revenue from its non-loyalty passenger segment . We take a deep dive into what's impacting employee retention and what employees are looking for in their new role. What percentage of Southwest's workforce is unionized? Offers may be subject to change without notice. Air Canada 9. Read more Southwest Airlines reviews (4167), Ramp Agent (Customer Service Agent) - JFK, Analytics Specialist, Data Translator, Storyteller, Neurodiversity Internship Program - Systems Engineer Intern Summer 2023 - Remote. To the extent permitted by applicable law and regulations, the Committee may delegate its powers, authority, duties and responsibilities to subcommittees or individual members of the Committee, as it deems appropriate. It also has a partnership with Chase Bank and offers customers a Southwest credit card. Southwest CEO at Center of Storm After Thousands of Canceled Flights, Southwest Airlines' Biz Model Gives Stock Edge, 4 Things You Didnt Know About Southwest Airlines (LUV), Analyzing Southwest Airlines' (LUV) Market Share, An Economic Analysis of the Low-Cost Airline Industry, Southwest Takes $825 Million Hit From Holiday Chaos. Delta Air Lines employees rated their Positive Business Outlook 7% higher than Southwest Airlines employees rated theirs. That means Southwest has bigger reserves in cash, credit, and other assets than smaller airlines. We thought getting into OHare would be impossible, says Watterson. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. Did not get the job I really wanted, its been a long process to get back in with UA and its not going as expected. Flying to Miami prevents our customers from Chicago or the Northeast from leaking to other airlines.. Kelly tells Fortune that the most distressing part of the crisis was the prospect of punishing the workforce. Try another search query or. But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. Salaries at Southwest Airlines can vary depending on the department or organizational function. Get in touch with us now. But I wanted to do everything I could to keep people in place and the blood flowing, so that wed be staffed to zoom out into the recovery and create more jobs. Kellys first move was to hammer nonlabor costs. Like Southwest Airlines Co workers, numerous employees in the United States take advantage of group health insurance funded by their employer, through which a Read more, Compare the work satisfaction, stress and gender at Southwest Airlines Co with similar employers, Streamlined solutions for every step of the compensation management journey, Continuously updated compensation datasets from Payscale and our partners, Flexible, customizable services and support for Payscale customers, End comp guesswork with our free job-pricing tool, From collection to validation, our data methodology delivers certainty, Meet the leaders dedicated to empowering better conversations around pay, Track and compare wage-growth by city, industry, company size, and job category, Access helpful tools and insights for career planning and salary negotiation, Explore real-world career trends and advice from the leaders in compensation, Uncover detailed salary data for specific jobs, employers, schools, and more, Take our salary survey to see what you should be earning. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. White recalls a trip from San Diego to Baltimore with one passenger aboard, a physician going to the Washington, D.C., area to treat COVID patients. 2022 Southwest Airlines Co. All Rights Reserved. "No, I do!" It said, We have no words to describe the damage. Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. Average Southwest Airlines Co Salary | PayScale Employee profit-sharing returns as Southwest Airlines netted $977 2023 Fortune Media IP Limited. Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. We want to set up our People, both present and future, to achieve their professional goals. The Committee shall also meet periodically in executive sessions without the presence of management. The COVID hit was far more damaging because we kept getting false dawns, then it would go on and on.. The national average salary for a Southwest Airlines employee in the United States is $41,081 per year. If enrolled in a high deductible plan, a health savings account (HSA) is available for Employees to save for eligible healthcare expensesnow or in the future. Put simply, Kelly grabbed plans off the shelf scheduled to take five years or more and exploited the pandemic to fast-track thecampaign. Fees for check baggage are a signifiant part of. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? One hundred people in personnel went to other jobs across the company, such as keeping maintenance records, says Jordan. But the airport wanted to incentivize new entrants to help recover its costs. Find salaries . About 1,500 of the 17,000 flight attendants got those furlough letters late last year, and I was flying with some of them, says White. Bigger doesn't always mean better, but it usually does mean safer when it comes to investing. Cost per available seat mile (CASM) is a measure of an airplane's cost to operate and ability to generate revenues. Southwest already entered the crisis hamstrung by the grounding of the aircraft its counting on for future expansion, the Boeing 737 MAX. Southwest Airlines also has one of the better rewards programs in the industry. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc, Ask anonymous questions on Fishbowl and get real time answers from Delta Air Lines and Southwest Airlines employees and others in your industry. Kelly views a full workforce thats ready to go and growas essential to capitalizing on its move into those 17 new markets, soon to increase to 18 with the addition of Syracuse. For contract, or union workers, the airline directed each group to reduce its 2019 costs by 10% in 2021. Southwest Airlines pays $19.75 an hour, on average. Once again, Kelly leaped in. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. The union contracts required that Southwest provide advance notice of the cuts to come if the flight attendants, pilots, and other groups failed to present a plan to reach that 10% target. The ace was planting the flag in two major destinations, one where Southwest had no hopes of flying, and the other where the journey would have taken years. WestJet Airlines 7. Southwest Airlines has set various policies and procedures that make flying with the airline easy. So in the first half of 2021, Southwest bet big on growth by almost doubling its roster of firm orders plus options on the MAX 7 and MAX 8 to 660 jets. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. $39,360 per year. But Midway, occupying just over one square mile, was operating at full capacity, preventing Southwest from adding more flightsto cities wheremore of its Windy City customers wanted to go. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. Southwest had no extra planes, since it had already retired 67 of its aging Boeing 737-300s to make way for the MAX. The FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. They can use the points to purchase future flights. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. Find your market worth with a report tailored to you, No results found. It is how the company handles the risks and uncertainties . There are no current listings of his current salary, but based on Mark King's salary as CEO, you can guess that it will be comparable. The charts on this page feature a breakdown of the total annual pay for the top executives at SOUTHWEST AIRLINES CO as reported in their proxy statements. Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Southwest Airlines Employees in Seattle, WA don't earn quite as much. A few years ago I was flying Southwest, and while standing in line to board there were two men in front of me that appeared to be traveling together. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. Board of Directors in SOUTHWEST AIRLINES CO. Before the crisis, OHare wasnt even on Southwests wish list. Investopedia does not include all offers available in the marketplace. Employees of Southwest Airlines 2021 | Statista But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. That quietly went away as Southwest has taken the lead over the last number of years in raising fares, especially as they have become more dominant in their biggest operational geographies. Southwest Airlines Co employees with the job title Software Engineer make the most with an average. Southwest Airlines Employee Benefits and Perks | Glassdoor His base pay is $643,750 with $989,000 as bonuses. While the Committee has the powers, authority, duties, and responsibilities set forth in this Charter, the role of the Committee is to assist the Board in its oversight responsibilities. How Is Southwest Different From Other Airlines? - Investopedia In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). Southwest. Finally, none of this would be possible without a motivated team of employees. To pull this off, Southwest Airlines offered employees a variety of options to retire early or take extended leaves of up to 18 months at 50% or more of their base pay. The Best Employee Retention Programs: Top Strategies, Hacks - TINYpulse Southwest Airlines has a track record for being very forward-thinking. But they could reach that goal through a variety of routes, by imposing layoffs, reducing pay, or hiking productivity, or a blend of all three. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. What your skills are worth in the job market is constantly changing. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. Entering the recovery, it will reach airports that do another $13 billion in business, a jump of 20% in what Watterson calls the pond we can fish in. The upshot: Kelly predicts that the surge in leisure travelers could by 2022 more than offset the decline in business traffic, lifting Southwest back to 2019 levels well before its big competitors get there. Current Employee - Senior Software Developer. The airline assembled a list of 50 domestic airports where it wanted to start service. Its unit costs are lower than the big three, but it also doesnt have the international network or fleet complexity. The purpose of the Compensation Committee (the "Committee") of the Board of Directors (the "Board") of Southwest Airlines Co. (the "Company") is to assist the Board with its oversight of (i) compensation of the Company's executives and other employees, as well as non-employee members of the Board; (ii) succession planning; and (iii) human Why do people leave their jobs? This is especially true in the uncertain demand environment that all airlines face today. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "plans," "believes," "expects," "anticipates," "may," "could," "intends," "goal," "will," "should," and similar expressions and variations thereof. How Much Does Southwest Airlines Pay in 2023? (4,307 Salaries) Alaska Airlines 8. The average Southwest Airlines salary ranges from approximately $39,092 per year for a Ticket Agent to $375,546 per year for a Senior Director. Theyd never seen that from Southwest before. If the unions didnt come through, the workforce would shrink by 6,000, or over 10%. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. In the spring, youd walk throughChicago Midway, one of Southwests busiest hubs, and see 15 people, says White. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. Southwest Airlines Newsroom The timing of these postings are made at the discretion of Southwest Airlines. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. In Miami, Southwest benefited from anotherbreakthroughcourtesy of the crisis. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world. Eligible dependents include spouse or committed/registered partner, eligible dependent children under 19 years old (or up to 24 if a full-time student), and parents. All Employees receive basic term life insurance at no cost. One way of measuring strength is size. The FAA had effectively frozen the number of landing and takeoff slots or times, making it impossible for Southwest to expand there, and challengeUnited and American, the two carriers thataccount for almost 80% of its traffic. Southwest Airlines Pay & Benefits reviews - Indeed Working at Greatwide Dedicated Transport LLC. Find information about retirement plans, insurance benefits, paid time off, reviews, and more. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Southwest was first in the airline industry to offer a ProfitSharing Plan. The median salary in Seattle, WA is $48,057. A manager, custom support and services at Southwest Airlines earns an average yearly salary of $27,625. In 2019, Southwest went to a new playbook: The goal was tofirst finish the last legs of the over-the-water network by adding Honolulu and gateways to four other Hawaiian airports from the West Coast. Southwest Airlines (LUV) has become known over the past two decades as a thriving airline company operating in a time when most airlines have been struggling. Thedeparturestotaled 4,500. But airlines are capital on wings. To create our salary estimates, Zippia starts with data published in publicly available sources such as the U.S. Bureau of Labor Statistics (BLS), Foreign Labor Certification Data Center (FLC). Southwest Airlines is more flexible than most other large airlines. You cant take care of people without taking care of the company,says Kelly. Prior to the pandemic, giant OHare wasnt even on Southwests list. Write by: . Read more Southwest Airlines reviews (4167), North Dallas High School P-Tech Desktop Support & Cybersecurity-Data Protection and Encryption Internships - Summer 2023, Manager - IT Applications Development (Java). It has pushed the industry in many positive trends, but this is an aggressive industry. Therefore, actual results may differ materially from what is expressed in or indicated by the Companys forward-looking statements.