Southwest Airlines Co employees with the job title Software Engineer make the most with an average. The revenue growth was below Southwest Airlines Co 's competitors average revenue growth of 46.6 %, recorded in the same quarter. Southwest Airlines may also be known as or be related to Southwest, Southwest Airlines, Southwest Airlines Co and Southwest Airlines Co. 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. Community outreach For more than 50 years, Southwest has connected People and championed communities. For several decades, Southwest Airlines was the envy of the airline industry because of multiple competitive advantages: a low-cost structure that stayed low due to fast growth, happy employees who liked their jobs and translated that to customers, loved by customers and the government for its low fares and creating strong competition, unique in its customer flexibility with no bag or change fees, and more. 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. And thats what happened. Southwest Airlines offers automated options to receive Investor Alerts. 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. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. Even after the voluntary programs took effect, Southwest was still far overstaffed. Southwest Airlines is more flexible than most other large airlines. 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. 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. A manager, custom support and services at Southwest Airlines earns an average yearly salary of $27,625. 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. Southwest Airlines pays $19.75 an hour, on average. 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. But in order to get new employees, Delta has accepted it will have to raise wages. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. 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. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University. The median salary in Seattle, WA is $48,057. Southwest was first in the airline industry to offer a ProfitSharing Plan. But long ago they used to advertise that their highest fare was $299. Miamis taking off like a rocket, he says. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. 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. Thepicture improved only slightly for the rest of the year; by Q4, ticket sales were still almost69% below 2019 levels. In Chicago, Southwest had longbeen the dominant carrier in Midway. Hence, Kelly predicted that for their size, those leisure destinations would generate far more new passengers than the business as a whole. So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. The $5.4 billion Payroll Support Program (PSP)grants and loans from the Treasury kept that number from going far higher. The Chair of the Committee shall preside over Committee meetings. 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. 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. Salaries at Southwest Airlines can vary depending on the department or organizational function. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. The Committee shall also meet periodically in executive sessions without the presence of management. Before the crisis, OHare wasnt even on Southwests wish list. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. Southwest had to build its business model around low operating costs to be able to offer low prices. 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%. New research on who's asking for raises and who's getting them as well as advice on how to ensure you're getting the salary you deserve. The card allows them to accumulate Southwest Airlines points when making other purchases. Before you decide whether variable pay is right for your org, get a deeper understanding of the variable pay options and the cultural impact of pay choices. Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. Southwest Airlines employees rate the overall compensation . 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. 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. One way of measuring strength is size. All Employees receive basic term life insurance at no cost. Southwest Airlines pays employees the most in San Jose, CA and Seattle, WA. Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. Part of that customer experience comes from the attitude and helpfulness of the employees it hires. Salaries By Southwest Airlines Competitors. 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. 4.3 out of 5 stars for Compensation/Benefits. Programs are available to help Southwest Employees live better on and off the job. Southwest Airlines pays those in the bottom 10 percent $19,000 a year, and the top 10 percent over $87,000. Kelly took the idle planes off the tarmac andback to work, laying the groundwork for a fast ascentonce the crisis lifted. When business conditions decline, only the strong survive. From compensation planning to variable pay to pay equity analysis, we surveyed 4,900+ organizations on how they manage compensation. Southwest Airlines has set various policies and procedures that make flying with the airline easy. All salaries and reviews are posted by employees working at Southwest Airlines vs. United Airlines. 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. Kelly perceived that Southwests strategy dovetailed with themarkets trend as the pandemic lifted. The competitive advantages Southwest enjoys today center mostly around the features that let it win corporate travel business against the global networks of American, United and Delta. The members of the Committee shall be appointed, removed, or replaced by the Board, and any vacancies on the Committee shall be filled by the Board in accordance with any applicable requirements of the Companys Bylaws and taking into account recommendations from the Nominating and Corporate Governance Committee. Southwest Employees play a large role in making a positive difference in the communities we serve. Compare Southwest Airlines with. Southwest Airlines pays $41,081 per year on average compared to Delta Air Lines which pays $36,132. Compared to the industry average of $38,173 per year, the average annual salary at Southwest Airlines is $41,081, which is 7.62% higher. 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. The problem was that the airport charged what amounted to big fees per passenger that were traditionally several times higher than in Fort Lauderdale. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. 2023 Southwest Airlines Co. All Rights Reserved. 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. 4.2. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. Nevertheless, Southwest has managed to beat the odds, with a 96% retention rate, 44 straight years of profitability, and no layoffs in their history. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. Southwest Airlines scored higher in 1 area: Compensation & Benefits. most airlines' revenues. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. 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. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. 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 . Headquarters: Chicago, Illinois, United States. Negative economic growth will also make businesses and consumers more sensitive to ticket prices, the low-cost airlines' primary advantage. The data presented on this page does not represent the view of Southwest Airlines and its employees or that of Zippia. Corporate Bylaws, Articles of Incorporation & Corporate Policies, Direct Stock Purchase Plan & Dividend Reinvestment. Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. How Much Does Southwest Airlines Pay Compared To Delta Air Lines? We had to make the flight anyway so that the plane could make the return trip.. The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. Boeing also has over 200 of the larger 737-800s, which are far younger and have years of service ahead. Policies like this one ensure that the customers of Southwest Airlines remain satisfied. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. 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. Plus, as competitors retreated, the top budget carrier had a chance to gain footholds in congested airports that it might never see again. United Airlines Holdings 4. Each member of the Committee will be entitled to rely, to the fullest extent permitted by law, upon the integrity of those persons or organizations within and outside the Company from whom it receives information and the accuracy of the information. Salaried employees switched roles. But at the same time, he showed the vision and moxie to pursue a superambitious flight plan for growth. This report is not for commercial use. Noncontract Employees receive coverage from a Company-paid short-term disability plan if an illness or injury lasts more than one week. $17.75 per hour. Terms & Conditions. 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. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. Today, Southwest is the third-largest airline globally and serves more than 100 million passengers annually. 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. Fees for check baggage are a signifiant part of. 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. Dominating the wish list of 50 destinations were smaller, beach-or-mountain vacation venues. With. This is especially true in the uncertain demand environment that all airlines face today. 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. Southwest had no extra planes, since it had already retired 67 of its aging Boeing 737-300s to make way for the MAX. We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. 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.. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. For contract, or union workers, the airline directed each group to reduce its 2019 costs by 10% in 2021. In his Oct. 15 warning on looming sacrifice, Kelly intoned, We all realize Southwest is a cause. Southwest holds the most cash and carries the lowest debt of the major carriers. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. Clear Skiesour Employee Assistance Program (EAP). Average Southwest Airlines Salary $41,081 yearly $19.75 hourly Updated November 18, 2022 Bachelor of Science (BS / BSc), Computer Science (CS), Bachelor of Science (BS / BSc), Marketing, Bachelor of Arts (BA), Professional & Technical Writing, Bachelor of Business Administration (BBA), Bachelor of Business Administration (BBA), International Business, Bachelor of Science (BS / BSc), Accounting, Bachelor of Science (BS / BSc), Aeronautics, Pay increases are a top concern for 2022 to attract and retain talent, Temporary employee laws: A guide to hiring contract roles, What to include in a termination letter: Template and examples, How to Manage Your Time and Prioritize Your Workload. 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. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. Loved it! In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. Southwest Airlines pays an average salary of $41,081 per year, or $19.75 an hour. These flexible policies help the airline to build high levels of brand loyalty. The airline assembled a list of 50 domestic airports where it wanted to start service. Today, nine in 10 of the employees who went on leave have returned to full-time work. 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 In fact, it didnt do either one. Although it is valued and laughed as one of the best airlines, it has taken several risks and uncertainties. We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. 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. The recent cancellation of most domestic change fees will be a tough one to lose, however. At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. Forward-looking statements are based on, and include statements about, the Companys beliefs, intentions, expectations, and strategies for the future.