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. With our Employee Stock Purchase plan, Employees can purchase Southwest common stock at a 10% discount through payroll deductions after six months of continuous service. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. Zippia gives an in-depth look into the details of Southwest Airlines, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Southwest Airlines. Community Giving Boards comprised of local Employees decide how Southwest gives back to charities in their neighborhoods, tapping into the passion points of their community. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. A career at Southwest Airlines includesseveral benefits and perks, from ourlegendary Culture to travel privileges for Employees and their eligible dependents. Southwest Airlines Co employees with the job title Software Engineer make the most with an average annual salary of $92,984, while employees with the title Associate Software Engineer make the least with an average annual salary of $73,993. Learn more about each company and apply to jobs near you. The FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. 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 Powered and implemented by Interactive Data Managed Solutions. This compensation may impact how and where listings appear. They now sit at the high-fare poker table with a suddenly weaker hand. COVID might not be a short, quick shock like 9/11, but a long-lasting plague that hammered commercial aviation harder than any other big business. Kelly took the idle planes off the tarmac andback to work, laying the groundwork for a fast ascentonce the crisis lifted. Checked baggage is mostly a leisure traveler behavior. Read reviews from current employees that include compensation and culture insights. This website contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. Southwest Airlines pays $19.75 an hour, on average. Of course, its biggest single cost by far is wages, salaries, and benefits,accounting in 2019 for 43% of operating costs, and for Southwest to survive, that huge nut had to shrink drastically. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. 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 Southwest Airlines and United Airlines employees and others in your industry. He also was given $3,945, 578 in stock value. Southwest Airlines Co pays its employees an average of $84,065 a year. The airline couldn't managed to keep its . This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. Overall, Southwest axed outlays of $8 billion in what Kelly calls cold, hard cash.That drive lowered combined operating expenses and capex by 40% versus 2019. Find your market worth with a report tailored to you, No results found. How Much Does Southwest Airlines Pay Compared To Delta Air Lines? The Committee shall also meet periodically in executive sessions without the presence of management. Kelly thought Miami was highly attractive but wasnt rushing to invade. Southwest Airlines is more flexible than most other large airlines. American Airlines 3. 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. The employees at Expeditors earn an average yearly salary of $45,974 per year, and the salaries at American Airlines average $45,470 per year. Today, Southwest is the third-largest airline globally and serves more than 100 million passengers annually. Furthermore, their strategy also includes a deep focus on customer experience and looking ahead. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). Salaries By Southwest Airlines Competitors. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. Remarkably, Kelly tellsFortune that at least on a quarterly basis, he hasnt given up on achieving Southwests biggest revenues ever by sometime next year, a record no other major is likely to match, or would have the nerve to predict. Terms & Conditions. Adds Watterson: We were looking for ways to keep people busy and reduce cash burn.. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. 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. Southwest Airlines is strong from both a size and a cost perspective. This cost pressure has caused Southwest to move into major airports like New Yorks LaGuardia and Reagan National in D.C. Theyve paid for slots to get into these airports, where the younger Southwest avoided airports like these both for cost reasons and operational efficiency. Low-cost carriers, such as Southwest, have several critical advantages over their competitors. Both tied in 1 area: Diversity & Inclusion. Southwests already seeing huge improvement in its fortunes: Its estimating that for June, operating revenues will be down just 20% from 2019versus three-fourths at this time last year, possibly bringing cash flow into balance and suggesting that it will make the turn to generating cashsoon. But whether Southwest was a primary reason or simply collateral damage, this change affects it significantly and will likely require more changes to keep its position among the once-frequent business travelers. 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. Delta. $39,360 per year. Working at Integrated Airline Services, Inc. Southwest already entered the crisis hamstrung by the grounding of the aircraft its counting on for future expansion, the Boeing 737 MAX. Current Employee - Senior Software Developer. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following CEO pay ratio data on its annual proxy statement to the SEC. Pay, Whether you are hiring a single employee , or an entire department of, The labor market is a strange place right now. Southwest Airlines has set various policies and procedures that make flying with the airline easy. The early-retirement packages included cash buyouts plus generous health and travel benefits. It was business travel that suffered most by far in the crisis, and it was clear to Kelly, as well as other industry leaders, that a rush of vacationers would lead the rebound, while it would take years for thebusiness crowd to return in their old numbers. Delta pilots approved a new contract that includes 34% raises over four years. The Committee shall have the powers, authority, duties, and responsibilities to: The Committee shall be directly responsible for the appointment, compensation, and oversight of the work of any compensation consultant, independent legal counsel, or other adviser retained by the Committee; provided that the Committee has taken into consideration all factors relevant to that persons independence from management, including any independence factors that may be specified from time to time by the Securities and Exchange Commission and the New York Stock Exchange. 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. The card allows them to accumulate Southwest Airlines points when making other purchases. Were still Americas top low-cost airline, were still number one in democratizing the skies, and coming out of the crisis, well take lots of market share from our competitors.. 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. Thepicture improved only slightly for the rest of the year; by Q4, ticket sales were still almost69% below 2019 levels. A lot of operating expenses flow from customer volumes, he notes. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world. Southwest Airlines scored higher in 1 area: Compensation & Benefits. For those interested in conducting a detailed compensation analysis, we recommend that you review the entire proxy statement. Southwest Airlines also has one of the better rewards programs in the industry. But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. Learn more about each company and apply to jobs near you. It only has a few aircraft types, which helps the airline reduce its costs. Q1 2023 Southwest Airlines Financial Results Conference Call. Southwest is the only large U.S. airline that is also a low-cost carrier. Youd look out the window when arriving at one of our maintenance airports like Dallas and see dozens of planes parked in the maintenance hangars. Flying over theVictorville Airport in Californias Mojave Desert, passengers would spy a sea of Southwest heavy metal ribboned in red, yellow, and blue. But long ago they used to advertise that their highest fare was $299. We take a deep dive into what's impacting employee retention and what employees are looking for in their new role. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. Kellys template for expanding Southwests reach in large part grew out of the crisis. Investopedia does not include all offers available in the marketplace. That means Southwest has bigger reserves in cash, credit, and other assets than smaller airlines. The Chair of the Committee shall preside over Committee meetings. 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. Southwest covers a generous amount of the cost, making the monthly amount Employees pay for medical and prescription drug coverage for themselves and their families competitively affordable. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. Average Southwest Airlines Salary $41,081 yearly $19.75 hourly Updated November 18, 2022 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. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. All salaries and reviews are posted by employees working at Southwest Airlines vs. United Airlines. Compare Southwest Airlines with. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. While rivals were exiting market after market, Southwest has opened no fewer than 17 new destinations, a campaign that encompasses key hubs Chicago OHare, Miami International, and Houston Intercontinental. The third program allowed workers to take time off in short spurts, a few hours or a day, a week, or a month at a time, also at half-pay. Air Canada 9. Kelly tells Fortune that the most distressing part of the crisis was the prospect of punishing the workforce. The first was called voluntary separation, or VSP. Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. Negative economic growth will also make businesses and consumers more sensitive to ticket prices, the low-cost airlines' primary advantage. It has pushed the industry in many positive trends, but this is an aggressive industry. We were flying around the country with four or five passengers on the737-700 and 800s that carry 143 and 175 passengers,White tellsFortune. He achieved that feat by deploying planes parked at desert airfields, and crews grounded by the pandemic, thatSouthwest still paid for, and dispatching them to thenew routes, a gambit that brought sorely needed revenue. Founded: April 6, 1926. It wasnt uncommon to make the 2,400-mile trek from Los Angeles to Honolulu with a dozen passengers. 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. 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. 4.3 out of 5 stars for Compensation/Benefits. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. United Airlines. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. 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. Privacy Policy. Southwest was already flying 34 of the MAX and had 26 more on order for the year, meaning that its total fleet for2019 was almost 10% smaller than expected. Forward-looking statements are based on, and include statements about, the Companys beliefs, intentions, expectations, and strategies for the future. Its more than just a paycheck. 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 was first in the airline industry to offer a ProfitSharing Plan. Delta ($27.4 billion) and United ($29.8 billion) are shouldering over two-and-a-half times Southwests burden, and American owes three times as much at $32.5 billion. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? But when its rivals pulled back, precious landing slots opened, and Kelly pounced. Transform pay with our enterprise-grade comp platform, Automate compensation with our full-suite solution, Payscale's employer-reported salary data network, The world`s largest employee-submitted pay database, Annual survey salary data from HR industry publishers, The crowdsourced compensation data API for developers, 100% company submitted data from 2,000+ businesses, Schedule a personalized demo to feel the power of Payscale, Find salary information for similar job titles and locations, Comp Planning Business Case Pitch Deck By clicking Download Pitch Deck, you. But Southwest faces stiff competition from Delta, United, American, Spirit, JetBlue, and WestJet. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. United Airlines. frontier airlines ceo salary. Core competencies are the resources and capabilities that comprise the strategic advantages of a business. Those two things allow the other airlines to serve markets Southwest cant, including smaller U.S. cities and cities across the globe, and they result in higher costs. Thorough reviews have been conducted to assure this data accurately reflects disclosures. Southwest Airlines' business model is based on extremely efficient operations, low-cost pricing, and innovative logistics solutions. 4.0. Pass benefits are difficult to use now because of overbooking permitted on all flights.. Current Employee - Customer Service Representative, Great job if you are good at customer service. You get to bat in a crisis a couple of times in 50 years, and how you do proves what you stand for or disproves it, he said. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. The Air Line Pilots Association . 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. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. In many markets where United overlaps with Southwest, United can match the flight frequency while offering the higher-cost things Southwest doesnt: assigned seats, business class optionality, airport lounges, frequent flier points that can get you anywhere in the world, and a set of worldwide airline partners. Prior to the pandemic, giant OHare wasnt even on Southwests list. 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. Yes, they still run great sales now and then. The salary of the CEO of Southwest Airlines, Mark King, is $5.7 million. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. Indicates external site which may or may not meet accessibility guidelines. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices The proxy statement includes footnotes and explanations of this information plus other information that is pertinent in assessing the overall value and appropriateness of the compensation information.