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. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. $41,064 per year. United Airlines Holdings 4. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. A value chain is a business model that describes all of the activities that a business employs to create a product or service. The average Southwest Airlines hourly pay ranges from approximately $19 per hour for a Ticket Agent to $105 per hour for a Sr Systems Engineer. The $5.4 billion Payroll Support Program (PSP)grants and loans from the Treasury kept that number from going far higher. Southwest Airlines Gratitude (SWAG) Points. Keeping customers engaged is a big competitive advantage for Southwest Airlines. Compare Southwest Airlines with. Miamis taking off like a rocket, he says. 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 Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. Terms & Conditions. 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. Based on our analysis, the employees in engineering earn salaries at Southwest Airlines that are well above average, with yearly earnings averaging $104,949. Still, it was clear by October that the crisis was dragging on so long that theaidSouthwest had received from the CARES Act Payroll Support Program wasnt adequate to prevent layoffs and pay cutsunless Washington stepped up with more rounds of assistance. Dominating the wish list of 50 destinations were smaller, beach-or-mountain vacation venues. 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. On that date in 1971, Americas first low-cost airline flew between Dallas, Houston, and San Antonio,followinga model that cofounder Rollin Kingillustrated for Kelleher in a hotel bar by drawing lines connecting those three cities on a napkin. However, there are many more factors that go into this competitive advantage. With net margin of 4.45 % company . The difference in fees made it extremely difficult for a low-cost carrier like Southwest, says Mann. Both tied in 1 area: Diversity & Inclusion. They now sit at the high-fare poker table with a suddenly weaker hand. 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. Southwest Airlines also has one of the better rewards programs in the industry. 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. Southwest Airlines is strong from both a size and a cost perspective. Founded: April 6, 1926. Overall rating 4.2 Based on 3645 reviews 4.2 Culture & Values Community outreach For more than 50 years, Southwest has connected People and championed communities. But in order to get new employees, Delta has accepted it will have to raise wages. Here's more information on Southwest Airlines' competitors : #1. Compare. One hundred people in personnel went to other jobs across the company, such as keeping maintenance records, says Jordan. 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. Low-cost carriers, such as Southwest, have several critical advantages over their competitors. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. 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 offers an excellent benefits package, including a generous dollar-for-dollar Company match in the 401 (k) Plan, subject to vesting requirements and certain compensation limits, as well as a ProfitSharing Plan. About 27% of the. Now Southwest is backing its growth plans with the most ambitious aircraft expansion program of any major. 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. 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. Yet within months Southwest roared back to post steady profits. Southwest is the only large U.S. airline that is also a low-cost carrier. could be sentient says Microsofts chatbot feels like watching the Shark Tank investor Kevin OLeary says a new generation of employee has never worked in an officeand its totally I cant afford to sell because I dont want to lose that rate: 3% mortgage rates will loom large over the U.S. CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. Southwest's main competitors are-American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, and Air France KLM. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. 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. Southwest is always looking for lower-cost solutions, and that is more important than ever before. But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. "I get this business customer." A part of our Company Promise is to provide a stable work environment with equal opportunity for learning and growth. Employees have free unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. But it also encompassed a secondfront, a major push in markets where Southwest was already strong, but could fly far more customers by adding flights. Shockingly, and this is the most speculative of my arguments I admit, over time the removal of this change could mean the beginning of Southwest charging for checked baggage. 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. 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. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. Even after the voluntary programs took effect, Southwest was still far overstaffed. Southwest Airlines has a track record for being very forward-thinking. 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. 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. 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. $53,200 per year. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following CEO pay ratio data on its annual proxy statement to the SEC. Investopedia does not include all offers available in the marketplace. 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. Employee-focused companies are dedicated to creating an atmosphere in which employees can be. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. Southwest Airlines pays $41,081 per year on average compared to Delta Air Lines which pays $36,132. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. 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. 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. Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. When were looking for leisure customers, the best places are those smaller locales, says Watterson. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. 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. Read reviews from current employees that include compensation and culture insights. American Airlines. Southwest coming to town is a big deal in those markets. Current Employee - Customer Service Representative, Great job if you are good at customer service. Air Canada 9. I write about airlines and travel to explain this crazy industry. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. perform such additional functions as may from time to time be assigned to the Committee by the Board. The problem was that the airport charged what amounted to big fees per passenger that were traditionally several times higher than in Fort Lauderdale. February 27, 2023 new bill passed in nj for inmates 2022 No Comments . 2023 Southwest Airlines Co. All Rights Reserved. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events, or developments, except as required by federal securities laws. On March 13, 2019, the FAA grounded the MAX following the Lion Air and Ethiopian Airlines crashes that killed346passengers. At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. If Southwest does lose some of its significant business base as a result of the change fee going away, baggage would be an obvious place for it to recover some of that lost revenue. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. How will Southwest respond? The Board shall appoint one member of the Committee as chairperson (Chair) of the Committee. It has pushed the industry in many positive trends, but this is an aggressive industry. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. 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. 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. We wanted to make our network more dense, to get more connectivity. 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. 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 Committee shall meet as often as the Committee, the Board, or the Chair of the Committee may deem necessary or appropriate for the Committee to fulfill its responsibilities. Southwest Airlines offers benefits to full-time employees including: Accidental death and dismemberment insurance. 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. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the . Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. The higher fares Southwest charges today are necessary because of cost increases due to people and airplanes, and size that makes it difficult to mitigate with growth alone. A proxy statement (or "proxy") is a form that every publicly traded U.S. company is required to file with the U.S. Securities & Exchange Commission (SEC) within 120 days after the end of its fiscal year. We had more customers than we could serve in Denver, Austin, Houston, Fort Lauderdale, Nashville, and more cities, says Kelly. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. Its more than just a paycheck. All Employees receive basic term life insurance at no cost. Employees are encouraged to volunteer for causes that matter most to them, and Southwest supports them through our Tickets for Time program which donates round trip tickets to nonprofits based on Employee volunteer hours. 4.0. The card allows them to accumulate Southwest Airlines points when making other purchases. Wed regularly book 40people on the busiest routes, and 16 would board. It only has a few aircraft types, which helps the airline reduce its costs. The amount of time off varies depending on your workgroup and years of service. 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. 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. So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. 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. Now for the first time, they can fly the largest low-cost carrier from nearby OHare. 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. Southwest Airlines has set various policies and procedures that make flying with the airline easy. From compensation planning to variable pay to pay equity analysis, we surveyed 4,900+ organizations on how they manage compensation. Step-By-Step Pay Equity Analysis Guide Product Guide By clicking Download Product Guide, Do you know what your employees really want for the holidays? Terms and Conditions.. Yes, they still run great sales now and then. At the time,it planned only one addition, Houston Intercontinental, for early 2021, as part of the fanfare for Southwests 50th anniversary, since it had flown there in the early days before moving to smaller William P. Hobby Airport. Employee Focus One of Southwest's competitive advantages is its focus on its employees. Bigger doesn't always mean better, but it usually does mean safer when it comes to investing. limited business travel to go around, the recent removal of change fees helps to make United, Delta, and American more competitive for this group. 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. See how working at Delta Air Lines vs. Southwest Airlines compares on a variety of workplace factors. All Rights Reserved. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. 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. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. 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. United Airlines began as a mail carrying service, and has turned into one of the most popular airlines in the world. Offers may be subject to change without notice. Southwest is the only large airline that can compete on price. 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. . Southwest gives points to customers. The airline couldn't managed to keep its . We've made recognizing one another easier through our SWAG platform and by celebrating several milestones throughout an Employee's Southwest journey. The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. 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 employees earn an average salary of $41,081 in 2023, with a range from $19,000 to $87,000. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. Its pricing strategy offers extremely low prices compared to other large airlines, such as Delta and American Airlines. Q1 2023 Southwest Airlines Financial Results Conference Call. Now, Southwest is offeringa total of20 nonstopflights a day to Dallas, Denver, Nashville, Phoenix, and Baltimore/Washingon. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). 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. 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.. 2023 Fortune Media IP Limited. Salaries By Southwest Airlines Competitors. Delta. 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. Southwest is a great airline and has been for many years. Alaska Airlines 8. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. This time, they took advantage of once-in-a-lifetime opportunities.. The COVID hit was far more damaging because we kept getting false dawns, then it would go on and on.. Southwest has stringent hiring practices and policies to ensure the right mix of team members. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). Job Security/Advancement. Thedeparturestotaled 4,500. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. 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. JetBlue Airways 5. What your skills are worth in the job market is constantly changing. 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. Plus, we offer several volunteer opportunities throughout the year to allow Employees to make a difference with their Southwest Family. These flexible policies help the airline to build high levels of brand loyalty. 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. 9/11 was awful, but we recovered quickly, he observes. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. 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. 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. 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. 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. Use of the Southwest websites and our Company Information Southwests not just thesolemajor to grow its footprint big-time in the pandemic; its also the only one not to impose huge layoffs and pay cuts. Both tied in 3 areas: Culture & Values, Diversity & Inclusion and Career Opportunities. The revenue growth was below Southwest Airlines Co 's competitors average revenue growth of 46.6 %, recorded in the same quarter. Pay, Whether you are hiring a single employee , or an entire department of, The labor market is a strange place right now. They allow a customer to cancel a reservation up to 10 minutes before the flight's departure. Southwest Airlines Employees in Seattle, WA don't earn quite as much. Try another search query or. Recognition is a cornerstone of our Culture. Southwest prides itself on never imposing furloughs or chopping wages. Salaries at Southwest Airlines can vary depending on the department or organizational function. The shockwaves from two of the worst tragedies in airline history left Southwest short of the horses needed for the charge. Southwest continues to improve its business model and practices. Find your market worth with a report tailored to you, No results found. 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. 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. Highest Paying Department At Southwest Airlines, Highest Paying Location At Southwest Airlines. 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 beauty of the time-off program is the ability to ramp up quickly, says Jordan. The Chair of the Committee shall preside over Committee meetings. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. Southwest Airlines scored higher in 1 area: Compensation & Benefits. Find information about retirement plans, insurance benefits, paid time off, reviews, and more. 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. 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 offers that appear in this table are from partnerships from which Investopedia receives compensation. He recalled that in the days after the World Trade Center attack, when he as CFO sent similarly disastrous figures to the budget carriers legendary cofounder, and his own mentor, Herb Kelleher. Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. That puts the company in a better position to deal with the disruptions caused by economic events that are beyond its control. They can use the points to purchase future flights. Ithada thriving hub in Fort Lauderdale, but not a single flight from much larger Miami International to the south. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! "No, I do!" Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. Southwest. 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. 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. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. In the spring, youd walk throughChicago Midway, one of Southwests busiest hubs, and see 15 people, says White.