In that same year, revenue from its non-loyalty passenger segment . It has pushed the industry in many positive trends, but this is an aggressive industry. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. Before the crisis, OHare wasnt even on Southwests wish list. 2023 Fortune Media IP Limited. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. To stanch the bleeding,Kelly indeed slashed outlays. Terms & Conditions. Kelly thought Miami was highly attractive but wasnt rushing to invade. Southwest. Just as it had to adopt its model as the company and the world around them has changed, the industry also adapts and finds ways to become more competitive. The higher paying positions at Southwest Airlines include senior software engineer, lead technician, senior java developer, and devops engineer. One of these is Southwest's cancellation policy. Starting in mid-November, Southwestintroduced service to Colorados Steamboat Springs, Telluride, and Colorado Springs; Californias Fresno, Santa Barbara, and Palm Springs; Floridas Sarasota/Bradenton and Destin/Fort Walton Beach; and Savannah/Hilton Head, as well as eight other first-time destinations. Southwest Airlines offers automated options to receive Investor Alerts. Kellys contingency planned called for a 10% across-the-board pay reduction for nonunion staff, chiefly office workers,sans layoffs. Yes, the pay is good at Southwest Airlines. Southwest Airlines has set various policies and procedures that make flying with the airline easy. 4.0. 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. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. The point here is that for narrow body service within the U.S., Southwests cost advantage to the big three U.S. airlines has largely gone away the big carriers costs where they fly against Southwest are similar. We had to keep flying to take passengers like that doctor, plus we were carrying medical supplies, he says. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. We had to make the flight anyway so that the plane could make the return trip.. . Finally, none of this would be possible without a motivated team of employees. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. Nevertheless, Southwest has managed to beat the odds, with a 96% retention rate, 44 straight years of profitability, and no layoffs in their history. The $5.4 billion Payroll Support Program (PSP)grants and loans from the Treasury kept that number from going far higher. Southwest Airlines pays those in the bottom 10 percent $19,000 a year, and the top 10 percent over $87,000. Forward-looking statements are based on, and include statements about, the Companys beliefs, intentions, expectations, and strategies for the future. Why do people leave their jobs? Using theSWAG platform, Employees can send a quick note of gratitude (we all call themKick Tails. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. But when its rivals pulled back, precious landing slots opened, and Kelly pounced. How will Southwest respond? Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. Average Southwest Airlines Salary $41,081 yearly $19.75 hourly Updated November 18, 2022 "Refunds For Flight Reservations.". Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. But in order to get new employees, Delta has accepted it will have to raise wages. Kellys template for expanding Southwests reach in large part grew out of the crisis. 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. Employees can enroll in long-term disability plans to protect them if they develop a disability and cant work for an extended period. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world. This is especially true in the uncertain demand environment that all airlines face today. Need to Know. Southwest's already seeing huge improvement in its fortunes: It's estimating that for June, operating revenues will be down just 20% from 2019 versus three-fourths at this time last year,. Southwest Airlines employees earn an average salary of $41,081 in 2023, with a range from $19,000 to $87,000. As Americans line up once again at the ticket counters, its likely that Southwest will begin its second half-century in a much stronger position versus American, United, and Delta than before the pandemic. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. And thats what happened. By donating to organizations that support people and the communities we serve, we take pride knowing our donations of time, money, and resources create meaningful impact. One said to the other You know what I like about flying Southwest? It owes that edge to two factors: the land graborchestrated during the pandemic, and its financial strength. 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. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. One of these is Southwest's cancellation policy. It said, We have no words to describe the damage. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. Southwest Airlines scored higher in 1 area: Compensation & Benefits. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. The estimated hourly pay at Southwest Airlines ranges from approximately $9.46 per hour for Revenue Manager to $68.65 per hour for Tableau Developer. A career at Southwest Airlines includesseveral benefits and perks, from ourlegendary Culture to travel privileges for Employees and their eligible dependents. Many folks who live near OHare on the far north side didnt take Southwest before because they dreaded making the long drive south to Midway. 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. I echoed what Herb Kelleher said during 9/11, says Kelly. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. It is boosted by a flexible business model that supports rapid change. 2023 Southwest Airlines Co. All Rights Reserved. $41,064 per year. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! 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. 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 is an Equal Opportunity Employer. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. The early-retirement packages included cash buyouts plus generous health and travel benefits. He also was given $3,945, 578 in stock value. Once again, Kelly leaped in. Founded: April 6, 1926. Kelly tells Fortune that the most distressing part of the crisis was the prospect of punishing the workforce. Low-cost carriers, such as Southwest, have several critical advantages over their competitors. 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. 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 problem was that the airport charged what amounted to big fees per passenger that were traditionally several times higher than in Fort Lauderdale. I dont like paying for checked bags when I didnt check any bags. They looked at me and said we didnt check bags either and then, with a figurative light bulb on their head, said hey, were subsidizing all those bag checkers! We all laughed, but it brings out a point about Southwests fares. Keeping customers engaged is a big competitive advantage for Southwest Airlines. It is how the company handles the risks and uncertainties . By contrast, the global industry lost 400,000 workers, and American alone laid off 32,000. Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. They allow a customer to cancel a reservation up to 10 minutes before the flight's departure. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. The employee data is based on information from people who have self-reported their past or current employments at Southwest Airlines. 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. Flying to Miami prevents our customers from Chicago or the Northeast from leaking to other airlines.. Try another search query or. Other available benefits include adoption assistance reimbursement, paid adoption leave, parental leave (Noncontract Employees), child and elder care resource and referral program, committed partner benefits, a concierge program, supplemental hospital insurance, pet insurance, and auto and home insurance. They allow a customer to cancel a. WestJet Airlines 7. A part of our Company Promise is to provide a stable work environment with equal opportunity for learning and growth. Southwest Airlines Co pays its employees an average of $84,065 a year. 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. What Benefits Does Southwest Airlines Offer? The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. Employee Focus One of Southwest's competitive advantages is its focus on its employees. Plus, we offer several volunteer opportunities throughout the year to allow Employees to make a difference with their Southwest Family. Thepicture improved only slightly for the rest of the year; by Q4, ticket sales were still almost69% below 2019 levels. 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. Dominating the wish list of 50 destinations were smaller, beach-or-mountain vacation venues. Southwest is one of the big four airlines in the U.S., along with American Airlines (AAL), Delta (DAL), and United (UAL). . Comparing the results to its competitors, Southwest Airlines Co reported Total Revenue increase in the 3 quarter 2022 by 32.93 % year on year. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! Current Employee - Customer Service Representative, Great job if you are good at customer service. Southwest plans to hire 8,000 workers this year after hiring more than 5,000 at the end of 2020. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). 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. Together, along with a little over $100,000 in other gifts and compensations, he made $5.7 million in 2021. 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 Air Lines 2. "No, I do!" Job Security/Advancement. About 27% of the. All rights reserved. They can use the points to purchase future flights. 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 offers that appear in this table are from partnerships from which Investopedia receives compensation. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. 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. When business conditions decline, only the strong survive. 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. Coronavirus Tips Working and Protection, For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following executives on its annual proxy statement to the SEC. Investopedia requires writers to use primary sources to support their work. 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. 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. 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. This time, Kelly, whose 17-year tenure makes him the longest-serving CEO for a major U.S. carrier, couldnt even guess at how long the mysterious virus would ground Americas travelers. 2022 Southwest Airlines Co. All Rights Reserved. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. The atmospherics were like something out of a disaster movie. Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. FORTUNE may receive compensation for some links to products and services on this website. Delta Air Lines scored higher in 6 areas: Overall Rating, Work-life balance, Senior Management, CEO Approval, Recommend to a friend and Positive Business Outlook. Rank Company Name Zippia Score Average Salary; 1: PSA Airlines: 4.9: $46,385: 2: Expeditors: 4.6: . The shockwaves from two of the worst tragedies in airline history left Southwest short of the horses needed for the charge. Customer service representative. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the . Opinions expressed by Forbes Contributors are their own. The airline couldn't managed to keep its . Southwest Airlines also has one of the better rewards programs in the industry. Southwest Airlines has a track record for being very forward-thinking. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. Employees who enroll in a BenefitsPlus program receive one times their annual base pay(minimum of $50,000, up to a maximum of $1 million) of basic term life insurance and may elect optional life insurance up to 10 times their salary, choosing from various levels of life insurance for their spouse/committed partner and their children. Now, Southwest is offeringa total of20 nonstopflights a day to Dallas, Denver, Nashville, Phoenix, and Baltimore/Washingon. [ 2] Here is an in-depth analysis of top Southwest's competitors and alternatives: 1. Miss the industry alot. It was a great way to help us offset big fixed costs thatare impossible to cut, says Kelly. The collapse in demand for flights throughout 2020 nearly put several airlines out of business, but Southwest was able to survive without major layoffs. 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%. Even after the voluntary programs took effect, Southwest was still far overstaffed. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. But the pandemic opened an unexpected new lane. Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. 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. Core Competencies in Business: Finding a Competitive Advantage, Overview of Insurtech & Its Impact on the Insurance Industry, Cost Per Available Seat Mile (CASM): Definition, Formula, Example, Value Chain: Definition, Model, Analysis, and Example, business model around low operating costs. Southwest Airlines is strong from both a size and a cost perspective. Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. Employees have free, unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. The Committee shall also meet periodically in executive sessions without the presence of management. You can learn more about the standards we follow in producing accurate, unbiased content in our. The recent cancellation of most domestic change fees will be a tough one to lose, however. 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. Terms and Conditions.. The first was called voluntary separation, or VSP. Still, Southwest was hemorrhaging so much cash, for so long, that it came darn close to breaking that hallowed tradition, just as the half-century mark approached. Suddenly, that new arrangement hasmade Miami much more attractive to low-cost competition. At the national level, Southwest makes a positive impact on our communities by supporting a number of issues through our charitable relationships. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. 9/11 was awful, but we recovered quickly, he observes. Cancel. 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. Community outreach For more than 50 years, Southwest has connected People and championed communities. Southwest prides itself on never imposing furloughs or chopping wages. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. For the previous half-decade prior to COVID, Southwest, which had been a domestic-only carrier, made a major shift by focusing its growth almost exclusively on vacation locales in the Caribbean and Latin America, adding flights to 20 destinations such as Cancn, Mexico; San Jos, Costa Rica; and Nassau in the Bahamas. 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. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. With. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. Miamis taking off like a rocket, he says. The objective was to secure large reductions through voluntary programs that kept the largest possible number ofworkersofficially employed, and poised to return in the upswing. Compare Southwest Airlines with. See how working at Delta Air Lines vs. Southwest Airlines compares on a variety of workplace factors. Southwest already entered the crisis hamstrung by the grounding of the aircraft its counting on for future expansion, the Boeing 737 MAX. 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. Q1 2023 Southwest Airlines Financial Results Conference Call. Southwest Airlines Co employee benefits and perks data. Alaska Airlines 8. At Southwest Airlines, the employees are paid different salaries depending on their location. We thought getting into OHare would be impossible, says Watterson. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). Therefore, actual results may differ materially from what is expressed in or indicated by the Companys forward-looking statements. One-third of Southwests 60,000 employees chose one of the programs. Can Southwest hold out even after other airlines have waived change fees. But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. Southwest is the only large airline that can compete on price. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. 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. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Southwest Airlines pays employees the most in San Jose, CA and Seattle, WA. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. 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. His base pay is $643,750 with $989,000 as bonuses. Baggage handler. 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. That super-solid positionshould enable it to greatly expand its fleet in the months and years to come, providing the extra seats to capture an outsize share of the overall markets growth, and in promising markets, pull passengers from its rivals planes. 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. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. United Airlines Holdings 4. A business model is a company's profit-making plan which defines the products or services it will sell, its target market, and any expected costs. Employees in the top 10 percent can make over $87,000 per year, while employees at the bottom 10 percent earn less than $19,000 per year. Find your market worth with a report tailored to you, No results found. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. Southwest Airlines is approximately 83 percent unionized. Southwest is a great airline and has been for many years. United Airlines. For contract, or union workers, the airline directed each group to reduce its 2019 costs by 10% in 2021. But long ago they used to advertise that their highest fare was $299. Offers may be subject to change without notice. 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. Use our tool to get a personalized report on your market worth. 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. In one of his 71 online broadcasts to employeesduring the crisis, Kelly on Oct. 15 declared, The Payroll Supportprogramallowed us to operate without pay cuts or furloughs through Sept. 30, but it didnt go far enough or long enoughNow its time to do what must be done to save Southwest.. Delta pilots approved a new contract that includes 34% raises over four years. Find information about retirement plans, insurance benefits, paid time off, reviews, and more. In February of 2022, Southwest Airlines appointed a new CEO, Bob Jordan. 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. It also services smaller airports that don't charge as much for gate access. And despite losing the MAX aircraft, Southwest honored its commitment to serve Honolulu and the other Hawaiian destinations in 2019 and early 2020, worsening the shortage. Delta Air Lines employees rated their Positive Business Outlook 7% higher than Southwest Airlines employees rated theirs. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system.