DALLAS, Feb. 6, 2020 /PRNewswire/ --Southwest Airlines Co. (NYSE: LUV) announced yesterday it will share $667 million with its Employees through its ProfitSharing Plan for 2019, which includes a discretionary, incremental profitsharing award for compensation from The Boeing Company related to the 2019 financial impact of the MAX groundings. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee.
This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the ProfitSharing Plan, and the remainder—approximately 2.2 percent—in cash. Some Employees will receive the entire profitsharing award as a contribution to their retirement accounts as specified in their collective bargaining agreements. Combined with the $925 million contributed in health and welfare benefits, as well as $542 million contributed to 401(k) plans, Southwest's total retirement and benefits contribution to Employees in 2019 was $2.1 billion.
"Our Employees delivered outstanding results despite a challenging year, and it's a pleasure to reward our People for all they contribute to our continued success," said Gary Kelly, Chairman of the Board and Chief Executive Officer of Southwest Airlines. "We recognize their resolve, persistence, resilience, and devotion to each other, our Customers, and our cause."
For 46 consecutive years, Southwest Airlines has rewarded its Employees with a profitsharing award. Southwest Airlines was the first in the industry to offer a ProfitSharing Plan, and over four decades, Southwest ProfitSharing has totaled nearly $5.8 billion—with over $5 billion in the past two decades.
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In its 49th year of service, Dallas-based Southwest Airlines Co. (NYSE: LUV) continues to differentiate itself from other air carriers with exemplary Customer Service delivered by more than 60,000 Employees to a Customer base topping 130 million passengers annually. Southwest became the nation's largest domestic air carrier in 2003 and maintains that ranking based on the U.S. Department of Transportation's most recent reporting of domestic originating passengers boarded. In peak travel seasons, Southwest operates more than 4,000 weekday departures among a network of 102 destinations in the United States and 10 additional countries.
Southwest coined Transfarency® to describe its purposed philosophy of treating Customers honestly and fairly, and low fares actually staying low. Southwest is the only major U.S. airline to offer bags fly free® to everyone (first and second checked pieces of luggage, size and weight limits apply, some carriers offer free checked bags on select routes or in qualified circumstances), and there are no change fees, though fare differences might apply.
Southwest is one of the most honored airlines in the world, known for a triple bottom line approach that contributes to the carrier's performance and productivity, the importance of its People and the communities they serve, and an overall commitment to efficiency and the planet. Learn more about how the carrier gives back to communities across the world by visiting Southwest.com/citizenship.
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SOURCE Southwest Airlines Co.