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The employee data is based on information from people who have self-reported their past or current employments at Southwest Airlines. The Chair of the Committee shall preside over Committee meetings. Pilots arent eligible, but may elect long-term disability coverage through Southwest Airlines Pilots Association (SWAPA). This time, they took advantage of once-in-a-lifetime opportunities.. 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. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. 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. The COVID hit was far more damaging because we kept getting false dawns, then it would go on and on.. Indicates external site which may or may not meet accessibility guidelines. Southwest prides itself on never imposing furloughs or chopping wages. In February of 2022, Southwest Airlines appointed a new CEO, Bob Jordan. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. 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. 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 FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. Plus, we offer several volunteer opportunities throughout the year to allow Employees to make a difference with their Southwest Family. Although it is valued and laughed as one of the best airlines, it has taken several risks and uncertainties. Delta pilots approved a new contract that includes 34% raises over four years. 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. 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. Accidental death & dismemberment (AD&D) insurance is also available as another way to protect Employees or their families in the event of an accident. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Put simply, Kelly grabbed plans off the shelf scheduled to take five years or more and exploited the pandemic to fast-track thecampaign. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. So Miami International is now charging flat monthly fees to carriers that provide high volumes of flights. The Board shall appoint one member of the Committee as chairperson (Chair) of the Committee. Southwest had no extra planes, since it had already retired 67 of its aging Boeing 737-300s to make way for the MAX. Programs are available to help Southwest Employees live better on and off the job. We had to keep flying to take passengers like that doctor, plus we were carrying medical supplies, he says. 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. Employees enjoy time off for personal use, vacation, or for the care of themselves or a loved one. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. The data presented on this page does not represent the view of Southwest Airlines and its employees or that of Zippia. Keeping customers engaged is a big competitive advantage for Southwest Airlines. But the pandemic opened an unexpected new lane. It also services smaller airports that don't charge as much for gate access. Q1 2023 Southwest Airlines Financial Results Conference Call. FORTUNE may receive compensation for some links to products and services on this website. Core competencies are the resources and capabilities that comprise the strategic advantages of a business. Prior to the pandemic, giant OHare wasnt even on Southwests list. We want to set up our People, both present and future, to achieve their professional goals. 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. Southwest gives points to customers. 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. The airline assembled a list of 50 domestic airports where it wanted to start service. Southwest coming to town is a big deal in those markets. Employees who enroll in a BenefitsPlus program receive one times their annual base pay(minimum of $50,000, up to a maximum of $1 million) of basic term life insurance and may elect optional life insurance up to 10 times their salary, choosing from various levels of life insurance for their spouse/committed partner and their children. 4.0. About 27% of the. Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. 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. The recent cancellation of most domestic change fees will be a tough one to lose, however. But what they did during the pandemic is the Big Gulp version of what they usually do. Southwest Airlines is strong from both a size and a cost perspective. A few years ago I was flying Southwest, and while standing in line to board there were two men in front of me that appeared to be traveling together. Southwest had to keep paying for its fleet of 750 Boeing 737s,flocks of which were parked at maintenance hubs such as Victorville. Southwest Airlines has set various policies and procedures that make flying with the airline easy. Thedeparturestotaled 4,500. Southwest Airlines has a business-oriented focus on the customer's experience. The $5.4 billion Payroll Support Program (PSP)grants and loans from the Treasury kept that number from going far higher. More importantly, the funds from the cancellation are available for a future trip. How do we recover?Marveling at a 97% drop in traffic from 2019, and a cash burn of $200 millionthat week, Kelly couldnt help wondering the same thing. 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? United Airlines Holdings 4. Dental coverage options include preventive, basic, major, and orthodontic care. InApril 2020, Southwest introduced three options for flight attendants, pilots, maintenance workers, salaried employees,and all other groups. All rights reserved. Southwest Airlines employees earn an average salary of $41,081 in 2023, with a range from $19,000 to $87,000. Overall rating 4.2 Based on 3645 reviews 4.2 Culture & Values The salary of the CEO of Southwest Airlines, Mark King, is $5.7 million. Southwest holds the most cash and carries the lowest debt of the major carriers. Southwest Airlines is approximately 83 percent unionized. A comeback on that scale would be heroic, considering the depth of the drop, and how long the pandemic crunched air travel to the levels of the 1970s. The offers that appear in this table are from partnerships from which Investopedia receives compensation. 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. Southwest. The Southwest Airlines just like any other business has its share of the risks and uncertainties that it faces. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc, Ask anonymous questions on Fishbowl and get real time answers from Southwest Airlines and United Airlines employees and others in your industry. Kelly tells Fortune that the most distressing part of the crisis was the prospect of punishing the workforce. Southwest Airlines' business model is based on extremely efficient operations, low-cost pricing, and innovative logistics solutions. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. $17.75 per hour. Together, along with a little over $100,000 in other gifts and compensations, he made $5.7 million in 2021. 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. Our growth plans were stymied by losing the MAX, saysAndrew Watterson,Southwests chief commercial officer. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. Southwest is the only large airline that can compete on price. Kelly reckoned that by deploying planes that would otherwise sit idle, and crews flying a lot less than before, Southwest could generate higher revenue serving new places than the extra cost of those flights, consisting primarily of jet fuel and airport fees. 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%. 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). Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. Corporate Bylaws, Articles of Incorporation & Corporate Policies, Direct Stock Purchase Plan & Dividend Reinvestment. What Is The Salary Of The Ceo Of Southwest Airlines? 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. LUV Sales vs. its Competitors Q3 2022. Southwest has stringent hiring practices and policies to ensure the right mix of team members. Terms and Conditions.. Here's more information on Southwest Airlines' competitors : #1. Salaries at Southwest Airlines can vary depending on the department or organizational function. In March, Southwest made the biggest new purchase since the MAX returned to service, raising its firm orders by 100 planes, and on June 7 it cited the faster-than-expected rebound to add another 34 MAX aircraft to its book. Baggage handler. Over a dozen vacation destinations joined the network, from Sarasota to Colorado Springs to Palm Springs, important new dots since vacations and adventures rather than business trips are leading the recovery in air travel. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! It only has a few aircraft types, which helps the airline reduce its costs. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Learn more about each company and apply to jobs near you. 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. You get a lot more news coverage and buzz in places like Fresno and Colorado Springs than going to major airports.. How Much Does Southwest Airlines Pay Compared To Delta Air Lines? S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. Plus, as competitors retreated, the top budget carrier had a chance to gain footholds in congested airports that it might never see again. Employees earn excellent pay and can prepare for their future with our exceptional retirement programs. Employees can choose from a broad spectrum of investment options and roll over any eligible funds from a previous employer. 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.. Southwest Airlines also has one of the better rewards programs in the industry. It has pushed the industry in many positive trends, but this is an aggressive industry. Factors that could cause these differences include, but are not limited to, the factors described under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in other filings, and as described in the press releases and other materials contained on this website. Community outreach For more than 50 years, Southwest has connected People and championed communities. Southwest Airlines does not review past postings to determine whether they remain accurate, and information contained in such postings may have been superseded. 2022 Southwest Airlines Co. All Rights Reserved. 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,. The Air Line Pilots Association . Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. United Airlines. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. Offers may be subject to change without notice. However, there are many more factors that go into this competitive advantage. What your skills are worth in the job market is constantly changing. Fees for check baggage are a signifiant part of. Spirit Airlines 6. Starting in mid-November, Southwestintroduced service to Colorados Steamboat Springs, Telluride, and Colorado Springs; Californias Fresno, Santa Barbara, and Palm Springs; Floridas Sarasota/Bradenton and Destin/Fort Walton Beach; and Savannah/Hilton Head, as well as eight other first-time destinations. Southwest 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. 4.3 out of 5 stars for Compensation/Benefits. But long ago they used to advertise that their highest fare was $299. Southwest Airlines is an Equal Opportunity Employer. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. 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. Dominating the wish list of 50 destinations were smaller, beach-or-mountain vacation venues. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. The amount of time off varies depending on your workgroup and years of service. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. 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. All Employees receive basic term life insurance at no cost. 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. If a customer can find a lower-priced ticket, Southwest Airlines matches the price. As part of those two deals, it secured an additional 187 options on MAX aircraft. They now sit at the high-fare poker table with a suddenly weaker hand. 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? Using theSWAG platform, Employees can send a quick note of gratitude (we all call themKick Tails. Each week when the finance team sent me the figures for our operations, they would provide commentary that was typically upbeat, he toldFortune. Checked baggage is mostly a leisure traveler behavior. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. The ace was planting the flag in two major destinations, one where Southwest had no hopes of flying, and the other where the journey would have taken years. 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. That means Southwest has bigger reserves in cash, credit, and other assets than smaller airlines. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. Founded: April 6, 1926. 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. White recalls a trip from San Diego to Baltimore with one passenger aboard, a physician going to the Washington, D.C., area to treat COVID patients. 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. 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. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc, Ask anonymous questions on Fishbowl and get real time answers from Delta Air Lines and Southwest Airlines employees and others in your industry. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. It has pushed the industry in many positive trends, but this is an aggressive industry. Employees have free unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. Now, Southwest is offeringa total of20 nonstopflights a day to Dallas, Denver, Nashville, Phoenix, and Baltimore/Washingon. Employees can enroll in long-term disability plans to protect them if they develop a disability and cant work for an extended period. 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. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! Use of the Southwest websites and our Company Information constitutes acceptance of our Terms & Conditions, Privacy Policy.