southwest airlines employee compensation compared to competitors southwest airlines employee compensation compared to competitors

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. One said to the other You know what I like about flying Southwest? Board of Directors in SOUTHWEST AIRLINES CO. Founded: April 6, 1926. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. 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). In that same year, revenue from its non-loyalty passenger segment . Id never read a message from the finance staff anything like that dark. JetBlue Airways 5. Customer service representative. 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,. Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. The collapse in demand for flights throughout 2020 nearly put several airlines out of business, but Southwest was able to survive without major layoffs. Compare Southwest Airlines with. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. The company has about 54,000 workers nationwide, including 1,000 in North Texas at its corporate. This report is not for commercial use. Fees for check baggage are a signifiant part of. Average Frozen Food Express Industries Salary, Working at Frozen Food Express Industries. While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. Departments that don't pay as well at Southwest Airlines include the customer service and warehouse organizational functions, with employees earning $31,175 and $35,038, respectively. Southwest Airlines has set various policies and procedures that make flying with the airline easy. Gary Kelly had no visibility. Nevertheless, Southwest has managed to beat the odds, with a 96% retention rate, 44 straight years of profitability, and no layoffs in their history. Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. "No, I do!" Employee Focus One of Southwest's competitive advantages is its focus on its employees. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. Investopedia requires writers to use primary sources to support their work. For more than 50 years, Southwest has connected People and championed communities. Southwest is a great airline and has been for many years. A shift towards, Handling involuntary termination is a likely occurrence for human resources managers and, Return better results with Payscale job search, Compare real living costs across different states, Consider potential directions your career can take, Calculate the 20-year net ROI for US-based colleges, Are you the kind of person who struggles to get a handle, Learn where the best career earners attended college. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. 4.2. Find information about retirement plans, insurance benefits, paid time off, reviews, and more. Job Security/Advancement. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices As flights dwindled, variable costs for the likes of fuel, oil, and landing fees dropped sharply. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. Now, Southwest is offeringa total of20 nonstopflights a day to Dallas, Denver, Nashville, Phoenix, and Baltimore/Washingon. Salaries By Southwest Airlines Competitors. Spirit Airlines 6. The $5.4 billion Payroll Support Program (PSP)grants and loans from the Treasury kept that number from going far higher. Employees can enroll in long-term disability plans to protect them if they develop a disability and cant work for an extended period. The early-retirement packages included cash buyouts plus generous health and travel benefits. Bachelor of Science (BS / BSc), Computer Science (CS), Bachelor of Science (BS / BSc), Marketing, Bachelor of Arts (BA), Professional & Technical Writing, Bachelor of Business Administration (BBA), Bachelor of Business Administration (BBA), International Business, Bachelor of Science (BS / BSc), Accounting, Bachelor of Science (BS / BSc), Aeronautics, Pay increases are a top concern for 2022 to attract and retain talent, Temporary employee laws: A guide to hiring contract roles, What to include in a termination letter: Template and examples, How to Manage Your Time and Prioritize Your Workload. Due to variations in the cost of living, location influences how much Southwest Airlines pays employees. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. Offers may be subject to change without notice. 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. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. The members of the Committee shall be appointed, removed, or replaced by the Board, and any vacancies on the Committee shall be filled by the Board in accordance with any applicable requirements of the Companys Bylaws and taking into account recommendations from the Nominating and Corporate Governance Committee. Southwest Airlines scored higher in 9 areas: Overall Rating, Culture & Values, Work-life balance, Senior Management, Compensation & Benefits, Career Opportunities, CEO Approval, Recommend to a friend and Positive Business Outlook. Community outreach For more than 50 years, Southwest has connected People and championed communities. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. All salaries and reviews are posted by employees working at Southwest Airlines vs. United Airlines. Find salaries . Based on our research, similar companies to Southwest Airlines are PSA Airlines, Expeditors, and American Airlines. Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. 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. 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. Yes, they still run great sales now and then. Read reviews from current employees that include compensation and culture insights. Put simply, Kelly grabbed plans off the shelf scheduled to take five years or more and exploited the pandemic to fast-track thecampaign. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! Still, Southwests balance sheet is in the best shape by far among the majors. 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. But what they did during the pandemic is the Big Gulp version of what they usually do. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. Southwest. 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. Low-cost carriers, such as Southwest, have several critical advantages over their competitors. Prior to the pandemic, giant OHare wasnt even on Southwests list. 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. 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. Southwest. These include white papers, government data, original reporting, and interviews with industry experts. You cant take care of people without taking care of the company,says Kelly. The Air Line Pilots Association . More importantly, the funds from the cancellation are available for a future trip. A typical senior software engineer salary at Southwest Airlines is $120,951. It said, We have no words to describe the damage. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. Overall rating 4.2 Based on 3645 reviews 4.2 Culture & Values You may retrieve the full proxy statement by going to the Securities and Exchange Commission (SEC) website at www.sec.gov and entering the company's name and then looking in the first column for an entry of "Form DEF 14A" (or any similar code). Dominating the wish list of 50 destinations were smaller, beach-or-mountain vacation venues. Baggage handler. Our growth plans were stymied by losing the MAX, saysAndrew Watterson,Southwests chief commercial officer. It has pushed the industry in many positive trends, but this is an aggressive industry. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. 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. Subscribe to Fortune Dailyto get essential business stories straight to your inbox each morning. How will Southwest respond? But the pandemic opened an unexpected new lane. It plans to replace the fast-retiring 700s with two MAX models: the MAX 8 at 175 seats, and the smaller MAX 7 that boards 143. All proxy statements are public filings made available to the general public by the SEC. 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. A career at Southwest Airlines includesseveral benefits and perks, from ourlegendary Culture to travel privileges for Employees and their eligible dependents. 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. As adopted by the Board of Directors of Southwest Airlines Co. on February 2, 2022. They allow a customer to cancel a. Current Employee - Customer Service Representative, Great job if you are good at customer service. In 2015, Southwest Airlines became the leading carrier in terms of market share and surpassed its main competitors, American Airlines and Delta Air Lines. But United aimed right at this and said no more.. In these prime vacation markets, the goal is to lure totally new customers. . 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. They can use the points to purchase future flights. Both tied in 3 areas: Culture & Values, Diversity & Inclusion and Career Opportunities. Delta Air Lines employees rated their Positive Business Outlook 7% higher than Southwest Airlines employees rated theirs. It turns out that for our customers, that drive is a much bigger hassle than we expected, says Watterson. Learn more about each company and apply to jobs near you. LUV Sales vs. its Competitors Q3 2022. While the Committee has the powers, authority, duties, and responsibilities set forth in this Charter, the role of the Committee is to assist the Board in its oversight responsibilities. Use our tool to get a personalized report on your market worth. 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. 9/11 was awful, but we recovered quickly, he observes. According to this theory, large airlines will experience declines, but they will not actually go out of business. 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. Southwest continues to improve its business model and practices. 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. Find your market worth with a report tailored to you, No results found. 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. The problem was that the airport charged what amounted to big fees per passenger that were traditionally several times higher than in Fort Lauderdale. A Company-paid concierge service is also available to those enrolled in this plan. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. By contrast, the global industry lost 400,000 workers, and American alone laid off 32,000. One-third of Southwests 60,000 employees chose one of the programs. Just as it had to adopt its model as the. Pay, Whether you are hiring a single employee , or an entire department of, The labor market is a strange place right now. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. 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. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. Based on our analysis, the employees in engineering earn salaries at Southwest Airlines that are well above average, with yearly earnings averaging $104,949. Learn more about each company and apply to jobs near you. Southwest coming to town is a big deal in those markets. Southwest holds the most cash and carries the lowest debt of the major carriers. Pass benefits are difficult to use now because of overbooking permitted on all flights.. Current Employee - Customer Service Representative, Great job if you are good at customer service. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. 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. Just as it had to adopt its model as the company and the world around them has changed, the industry also adapts and finds ways to become more competitive. 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. 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. When business conditions decline, only the strong survive. 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. 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. Many folks who live near OHare on the far north side didnt take Southwest before because they dreaded making the long drive south to Midway. Southwest Airlines Co employee benefits and perks data. You can learn more about the standards we follow in producing accurate, unbiased content in our. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. That month, Southwest laid the runway for the liftoff ahead by purchasing a big new batch of the super-fuel-efficient aircraft. 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 Airlines employees rated their Positive Business Outlook 3% higher than United Airlines employees rated theirs. The amount of time off varies depending on your workgroup and years of service. 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. Suddenly, that new arrangement hasmade Miami much more attractive to low-cost competition. The employee data is based on information from people who have self-reported their past or current employments at Southwest Airlines. In fact, it didnt do either one. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Miamis taking off like a rocket, he says. FORTUNE may receive compensation for some links to products and services on this website. In his Oct. 15 warning on looming sacrifice, Kelly intoned, We all realize Southwest is a cause. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. Southwest Airlines is approximately 83 percent unionized. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. 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. 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. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. The Chair of the Committee shall preside over Committee meetings. The difference in fees made it extremely difficult for a low-cost carrier like Southwest, says Mann. Southwest Airlines scored higher in 1 area: Compensation & Benefits. Plus, as competitors retreated, the top budget carrier had a chance to gain footholds in congested airports that it might never see again. 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. American Airlines. In Miami, Southwest benefited from anotherbreakthroughcourtesy of the crisis. For the full year, the total miles flown by all Southwestpaying passengers dropped by 60%, and on average, its fleet of Boeing 737-700s and 800s flew half-empty. Employees have free unlimited travel privileges for themselves and eligible dependents on Southwest Airlines. COVID might not be a short, quick shock like 9/11, but a long-lasting plague that hammered commercial aviation harder than any other big business. In Q2 of last year, Southwest suffered an 87% drop inpassenger revenues from $5.5 billion to $700 million, causing a staggering loss of$1.1 billion. I cant promise we wont lay people off, but I can promise its the last thing well do.. 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. Can Southwest hold out even after other airlines have waived change fees. Southwest is a great airline and has been for many years. 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. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Current Employee - Senior Software Developer. It owes that edge to two factors: the land graborchestrated during the pandemic, and its financial strength. Keeping customers engaged is a big competitive advantage for Southwest Airlines.