They allow a customer to cancel a reservation up to 10 minutes before the flight's departure. But when its rivals pulled back, precious landing slots opened, and Kelly pounced. Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. Southwest Airlines has a business-oriented focus on the customer's experience. 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. Delta Air Lines 2. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. Southwest had to keep paying for its fleet of 750 Boeing 737s,flocks of which were parked at maintenance hubs such as Victorville. Its pricing strategy offers extremely low prices compared to other large airlines, such as Delta and American Airlines. It was a great way to help us offset big fixed costs thatare impossible to cut, says Kelly. Terms and Conditions.. 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. We want to set up our People, both present and future, to achieve their professional goals. We've made recognizing one another easier through our SWAG platform and by celebrating several milestones throughout an Employee's Southwest journey. From compensation planning to variable pay to pay equity analysis, we surveyed 4,900+ organizations on how they manage compensation. 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. . That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. In February of 2022, Southwest Airlines appointed a new CEO, Bob Jordan. Current Employee - Senior Software Developer. 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. 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. LUV Sales vs. its Competitors Q3 2022. Miss the industry alot. frontier airlines ceo salary. Wed regularly book 40people on the busiest routes, and 16 would board. Adds Watterson: We were looking for ways to keep people busy and reduce cash burn.. 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. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. Southwest Airlines has a track record for being very forward-thinking. 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. As part of those two deals, it secured an additional 187 options on MAX aircraft. 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. New research shows how to set pay for remote employees. The Committee shall consist of at least two members of the Board, each of whom shall meet applicable independence requirements of the New York Stock Exchange. One hundred people in personnel went to other jobs across the company, such as keeping maintenance records, says Jordan. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the . Southwest Airlines is an Equal Opportunity Employer. Kelly took the idle planes off the tarmac andback to work, laying the groundwork for a fast ascentonce the crisis lifted. One said to the other You know what I like about flying Southwest? So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. Southwest Airlines is more flexible than most other large airlines. The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. 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. When were looking for leisure customers, the best places are those smaller locales, says Watterson. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Programs are available to help Southwest Employees live better on and off the job. 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. This growth has made them a major carrier of business travelers, who choose Southwest because of their high frequency in and among big cities, good reliability, and easy usage rules without a lot of fees. Southwest was first in the airline industry to offer a ProfitSharing Plan. Kellys template for expanding Southwests reach in large part grew out of the crisis. Our data shows that Southwest Airlines employees in San Jose, CA get paid the most, where the average yearly pay is $48,257. 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. Negative economic growth will also make businesses and consumers more sensitive to ticket prices, the low-cost airlines' primary advantage. Baggage handler. There are many reasons that United, followed quickly by Delta and American, chose to cancel change fees for higher-fare paying customers. Core competencies are the resources and capabilities that comprise the strategic advantages of a business. Were still Americas top low-cost airline, were still number one in democratizing the skies, and coming out of the crisis, well take lots of market share from our competitors.. The card allows them to accumulate Southwest Airlines points when making other purchases. The data presented on this page does not represent the view of Southwest Airlines and its employees or that of Zippia. American Airlines 3. Southwest gives points to customers. We also reference original research from other reputable publishers where appropriate. United Airlines partners with smaller airlines across the . She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University. Southwest is a great airline and has been for many years. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. Southwest Airlines Co pays its employees an average of $84,065 a year. Clear Skiesour Employee Assistance Program (EAP). Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Southwest Airlines Co employees with the job title Software Engineer make the most with an average. Southwest plans to hire 8,000 workers this year after hiring more than 5,000 at the end of 2020. Read more Southwest Airlines reviews (4167), Ramp Agent (Customer Service Agent) - JFK, Analytics Specialist, Data Translator, Storyteller, Neurodiversity Internship Program - Systems Engineer Intern Summer 2023 - Remote. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. Flight attendant. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. Id never read a message from the finance staff anything like that dark. Can Southwest hold out even after other airlines have waived change fees. And the$1.54 billion Southwestowes in PSP debt carries extremely low rates. Kellys contingency planned called for a 10% across-the-board pay reduction for nonunion staff, chiefly office workers,sans layoffs. United Airlines Holdings 4. Find salaries . Today, nine in 10 of the employees who went on leave have returned to full-time work. Southwest Airlines pays an average salary of $41,081 per year, or $19.75 an hour. Use of the Southwest websites and our Company Information constitutes acceptance of our Terms & Conditions, Privacy Policy. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. Read reviews from current employees that include compensation and culture insights. Today, Southwest is the third-largest airline globally and serves more than 100 million passengers annually. But one of the structurally difficult things about the airline business is that two key components people and airplanes tend to get more expensive as they get older. Southwest Airlines pays those in the bottom 10 percent $19,000 a year, and the top 10 percent over $87,000. Southwest Airlines is strong from both a size and a cost perspective. 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. 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. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. But airlines are capital on wings. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. 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. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. And thats what happened. 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. Highest Paying Department At Southwest Airlines, Highest Paying Location At Southwest Airlines. Southwest Airlines has set various policies and procedures that make flying with the airline easy. We had more customers than we could serve in Denver, Austin, Houston, Fort Lauderdale, Nashville, and more cities, says Kelly. As adopted by the Board of Directors of Southwest Airlines Co. on February 2, 2022. A Company-paid concierge service is also available to those enrolled in this plan. Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. I like that everyone knows what to do they just get in line with their number and there is no drama. I butted in and said You know what I dont like about flying Southwest? 9/11 was awful, but we recovered quickly, he observes. 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. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. Fees for check baggage are a signifiant part of. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? Based on our analysis, the employees in engineering earn salaries at Southwest Airlines that are well above average, with yearly earnings averaging $104,949. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. Southwest is one of the big four airlines in the U.S., along with American Airlines (AAL), Delta (DAL), and United (UAL). 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 has set various policies and procedures that make flying with the airline easy. 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 Investopedia contributors come from a range of backgrounds, and over 24 years there have been thousands of expert writers and editors who have contributed. From 2020 to 2024, we planned on a big, five-year growth run.. 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. Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. United Airlines. United Airlines. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. 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. Yes, they still run great sales now and then. 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. What Benefits Does Southwest Airlines Offer? A value chain is a business model that describes all of the activities that a business employs to create a product or service. Policies like this one ensure that the customers of Southwest Airlines remain satisfied. 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 . These flexible policies help the airline to build high levels of brand loyalty. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. 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. In these prime vacation markets, the goal is to lure totally new customers. These include white papers, government data, original reporting, and interviews with industry experts. According to this theory, large airlines will experience declines, but they will not actually go out of business. 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. Another 4,000 to 5,000 chose towork on flexible schedules, and 14,500opted for extended time off, often to supervisetheir schooled-at-home kids. 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. Even after the voluntary programs took effect, Southwest was still far overstaffed. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. It has pushed the industry in many positive trends, but this is an aggressive industry. 4.2. Air Canada 9. Together, along with a little over $100,000 in other gifts and compensations, he made $5.7 million in 2021. Southwest's main competitors are-American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, and Air France KLM. $39,360 per year. Headquarters: Chicago, Illinois, United States. 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,. But United aimed right at this and said no more.. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. 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. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. 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 Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. 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. Southwest Airlines may also be known as or be related to Southwest, Southwest Airlines, Southwest Airlines Co and Southwest Airlines Co. We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. Average Frozen Food Express Industries Salary, Working at Frozen Food Express Industries. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. But what they did during the pandemic is the Big Gulp version of what they usually do. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! 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. 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. This report is not for commercial use. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. Current Employee - Customer Service Representative, Great job if you are good at customer service. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Delta Air Lines employees rated their Positive Business Outlook 7% higher than Southwest Airlines employees rated theirs. I cant promise we wont lay people off, but I can promise its the last thing well do.. 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. But the airport wanted to incentivize new entrants to help recover its costs. 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. Find your market worth with a report tailored to you, No results found. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! Southwest Airlines is approximately 83 percent unionized. Prior to the pandemic, giant OHare wasnt even on Southwests list. 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. You cant take care of people without taking care of the company,says Kelly.