Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. 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. Yes, they still run great sales now and then. But Southwest faces stiff competition from Delta, United, American, Spirit, JetBlue, and WestJet. At the national level, Southwest makes a positive impact on our communities by supporting a number of issues through our charitable relationships. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed in or indicated by the Companys forward-looking statements. 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. The shockwaves from two of the worst tragedies in airline history left Southwest short of the horses needed for the charge. answer_1 (2).docx - Running Head: SOUTHWEST AIRLINES 1 Employees of Southwest Airlines 2021 | Statista 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 Airlines Just Made a Big Announcement That Will Make Southwest Employees play a large role in making a positive difference in the communities we serve. 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. 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%. 1,214 reviews from Southwest Airlines employees about Pay & Benefits Find jobs. At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. Job Security/Advancement. We've made recognizing one another easier through our SWAG platform and by celebrating several milestones throughout an Employee's Southwest journey. For those interested in conducting a detailed compensation analysis, we recommend that you review the entire proxy statement. Compare. This report is not for commercial use. Spirit Airlines 6. According to this theory, large airlines will experience declines, but they will not actually go out of business. 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. We had to make the flight anyway so that the plane could make the return trip.. We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. The Committee shall maintain minutes of its meetings and report on its activities to the full Board. 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. 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. Southwest gives points to customers. Salaries By Southwest Airlines Competitors. 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. Besides motivated employees and great customer service, Southwest Airlines offers one of the lowest-priced solutions for air travel. The amount of time off varies depending on your workgroup and years of service. Southwest Airlines pays those in the bottom 10 percent $19,000 a year, and the top 10 percent over $87,000. 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. The higher paying positions at Southwest Airlines include senior software engineer, lead technician, senior java developer, and devops engineer. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. Here's more information on Southwest Airlines' competitors : #1. 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. They can use the points to purchase future flights. This time, they took advantage of once-in-a-lifetime opportunities.. Find information about retirement plans, insurance benefits, paid time off, reviews, and more. Both tied in 3 areas: Culture & Values, Diversity & Inclusion and Career Opportunities. . [ 2] Here is an in-depth analysis of top Southwest's competitors and alternatives: 1. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. 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. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! 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. 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. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. This compensation may impact how and where listings appear. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. A part of our Company Promise is to provide a stable work environment with equal opportunity for learning and growth. Yet within months Southwest roared back to post steady profits. 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. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. All proxy statements are public filings made available to the general public by the SEC. 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. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. You cant take care of people without taking care of the company,says Kelly. Low-cost carriers, such as Southwest, have several critical advantages over their competitors. 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. In the spring, youd walk throughChicago Midway, one of Southwests busiest hubs, and see 15 people, says White. Southwest is the only large airline that can compete on price. 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. Adds Watterson: We were looking for ways to keep people busy and reduce cash burn.. Checked baggage is mostly a leisure traveler behavior. We had no plan for starting service there at all.. With net margin of 4.45 % company . Southwest Airlines Co employee benefits and perks data. Investopedia requires writers to use primary sources to support their work. Southwest Airlines Loses Another Competitive Advantage - Forbes 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. 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. American Airlines 3. It also services smaller airports that don't charge as much for gate access. It only has a few aircraft types, which helps the airline reduce its costs. As flights dwindled, variable costs for the likes of fuel, oil, and landing fees dropped sharply. Salaries at Southwest Airlines can vary depending on the department or organizational function. They are now a major player in Chicago, Houston, Phoenix, Baltimore, Florida, California and Dallas thanks to the removal of the highly restrictive Wright Amendment that for decades kept a cap on flights from Dallas Love Field. A value chain is a business model that describes all of the activities that a business employs to create a product or service. While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. Southwest. The Board shall appoint one member of the Committee as chairperson (Chair) of the Committee. We take a deep dive into what's impacting employee retention and what employees are looking for in their new role. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. 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. To stanch the bleeding,Kelly indeed slashed outlays. 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. We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. 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. Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. Delta Airlines Planning $7 Billion Investment to Make Travel Better perform such additional functions as may from time to time be assigned to the Committee by the Board. Alaska Airlines 8. 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. Compare working at Delta vs Southwest Airlines | Indeed.com When business conditions decline, only the strong survive. Its more than just a paycheck. Finally, none of this would be possible without a motivated team of employees. That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. 9/11 was awful, but we recovered quickly, he observes. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. But in order to get new employees, Delta has accepted it will have to raise wages. Indicates external site which may or may not meet accessibility guidelines. 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. Kelly thought Miami was highly attractive but wasnt rushing to invade. 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. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. Board of Directors in SOUTHWEST AIRLINES CO. One-third of Southwests 60,000 employees chose one of the programs. 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. $39,360 per year. When were looking for leisure customers, the best places are those smaller locales, says Watterson. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. $18.45 per hour. Southwest Airlines pays an average salary of $41,081 per year, or $19.75 an hour. What your skills are worth in the job market is constantly changing. 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. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. "Refunds For Flight Reservations.". Southwest Airlines employees rated their Positive Business Outlook 3% higher than United Airlines employees rated theirs. 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. The early-retirement packages included cash buyouts plus generous health and travel benefits. 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. Gary Kelly had no visibility. The fight for higher-paying business travelers has always been the game of the larger airlines, and the elimination of change fees repositions that balance. The median salary in Seattle, WA is $48,057. 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. 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. Southwest Airlines Gratitude (SWAG) Points. 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 Companys executives and other employees, as well as non-employee members of the Board; (ii) succession planning; and (iii) human resources policies and practices. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. Air Canada 9. "No, I do!" So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. Our Fair Pay score for Southwest Airlines Co is 3.32. WestJet Airlines 7. Flying to Miami prevents our customers from Chicago or the Northeast from leaking to other airlines.. Wed regularly book 40people on the busiest routes, and 16 would board. 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. I write about airlines and travel to explain this crazy industry. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. There are many reasons that United, followed quickly by Delta and American, chose to cancel change fees for higher-fare paying customers. For details regarding Direct Stock Purchase & Dividend Reinvestment and other Transfer Agent information. Fees for check baggage are a signifiant part of. We wanted to make our network more dense, to get more connectivity. United Airlines partners with smaller airlines across the . 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. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. 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 pays $41,081 per year on average compared to Delta Air Lines which pays $36,132. 4.3 out of 5 stars for Compensation/Benefits. Southwest Airlines Takes a Different Path Through the Pandemic The timing of these postings are made at the discretion of Southwest Airlines. Southwest already entered the crisis hamstrung by the grounding of the aircraft its counting on for future expansion, the Boeing 737 MAX. 4.0. Southwest Airlines' business model is based on extremely efficient operations, low-cost pricing, and innovative logistics solutions. Investopedia does not include all offers available in the marketplace. SOUTHWEST AIRLINES CO Executive Salaries & Other Compensation - Salary.com United Airlines. 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 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. 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. Southwest Airlines has a track record for being very forward-thinking. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. Southwest Airlines Salaries (February 2023) - Zippia Southwest Airlines scored higher in 1 area: Compensation & 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. 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. 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. Part of that customer experience comes from the attitude and helpfulness of the employees it hires. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. 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. Then Kelly planned to launch a long-term offensive in the U.S. by flying to new places. One way of measuring strength is size. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. 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 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. 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. Working At Southwest Airlines: Employee Reviews and Culture How Much Does Southwest Airlines Pay Compared To Delta Air Lines? The data on this page is also based on data sources collected from public and open data sources on the Internet and other locations, as well as proprietary data we licensed from other companies. Southwest Airlines Newsroom 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. Current Employee - Senior Software Developer. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? Compensation Committee - Southwest Airlines Terms & Conditions. FORTUNE may receive compensation for some links to products and services on this website. Compare. Youd think that to weather the worst devastation in modern airline history, atempest whose ferocity and duration were totally unpredictable, Kelly would play defense by onboarding a strategy of chopping costs and otherwise hunkering down. 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 holds the most cash and carries the lowest debt of the major carriers. We thought getting into OHare would be impossible, says Watterson. 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). 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. New research shows how to set pay for remote employees. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors.