But at the same time, he showed the vision and moxie to pursue a superambitious flight plan for growth. Southwest Airlines scored higher in 1 area: Compensation & Benefits. Highest Paying Department At Southwest Airlines, Highest Paying Location At Southwest Airlines. Company reviews. Indicates external site which may or may not meet accessibility guidelines. 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. Southwest Airlines Employees in Seattle, WA don't earn quite as much. That puts the company in a better position to deal with the disruptions caused by economic events that are beyond its control. 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 had to keep paying for its fleet of 750 Boeing 737s,flocks of which were parked at maintenance hubs such as Victorville. 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. If the Board fails to appoint a Chair of the Committee, the Committee shall appoint one member of the Committee as Chair. Southwest is the only large airline that can compete on price. You can learn more about the standards we follow in producing accurate, unbiased content in our. The median salary in Seattle, WA is $48,057. The Southwest Airlines just like any other business has its share of the risks and uncertainties that it faces. FORTUNE may receive compensation for some links to products and services on this website. Overall rating 4.2 Based on 3645 reviews 4.2 Culture & Values . The national average salary for a Southwest Airlines employee in the United States is $41,081 per year. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. Powered and implemented by Interactive Data Managed Solutions. In that same year, revenue from its non-loyalty passenger segment . But behind the Churchillian fervor is a solid plan to do once again what Southwest has always accomplished coming out of a crisisto soar while rivals are still revving on the tarmac. The starting pay at Southwest Airlines is $19,000 per year, or $9.13 per hour. I dont like paying for checked bags when I didnt check any bags. They looked at me and said we didnt check bags either and then, with a figurative light bulb on their head, said hey, were subsidizing all those bag checkers! We all laughed, but it brings out a point about Southwests fares. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. But Midway, occupying just over one square mile, was operating at full capacity, preventing Southwest from adding more flightsto cities wheremore of its Windy City customers wanted to go. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! 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. Cost per available seat mile (CASM) is a measure of an airplane's cost to operate and ability to generate revenues. Adds Watterson: We were looking for ways to keep people busy and reduce cash burn.. Although it is valued and laughed as one of the best airlines, it has taken several risks and uncertainties. I write about airlines and travel to explain this crazy industry. Still, Southwests balance sheet is in the best shape by far among the majors. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). 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. Southwest prides itself on never imposing furloughs or chopping wages. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. In Chicago, Southwest had longbeen the dominant carrier in Midway. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. The salary of the CEO of Southwest Airlines, Mark King, is $5.7 million. Through this sound strategy, Southwest achieved multiple competitive advantages that have allowed it to stay relevant in a rapidly changing world. There are no current listings of his current salary, but based on Mark King's salary as CEO, you can guess that it will be comparable. It wasnt uncommon to make the 2,400-mile trek from Los Angeles to Honolulu with a dozen passengers. Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. Corporate Bylaws, Articles of Incorporation & Corporate Policies, Direct Stock Purchase Plan & Dividend Reinvestment. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. 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. 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. WestJet Airlines 7. Use our tool to get a personalized report on your market worth. 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. Privacy Policy. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. But in December, Kelly reached an agreement with the Treasuryfor additional aid. 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. He also was given $3,945, 578 in stock value. Its unit costs are lower than the big three, but it also doesnt have the international network or fleet complexity. 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. But Southwest faces stiff competition from Delta, United, American, Spirit, JetBlue, and WestJet. 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. The early-retirement packages included cash buyouts plus generous health and travel benefits. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. The estimated salary at Southwest Airlines ranges from approximately $31,756 per year for Payroll Coordinator to $161,713 per year for Principal Software Engineer. Vision coverage is an available option for Employees and their families, and includes complete eye exams and contact lenses, or lenses and frames. 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. Wed regularly book 40people on the busiest routes, and 16 would board. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. Read more Southwest Airlines reviews (4167), North Dallas High School P-Tech Desktop Support & Cybersecurity-Data Protection and Encryption Internships - Summer 2023, Manager - IT Applications Development (Java). Kelly thought Miami was highly attractive but wasnt rushing to invade. These flexible policies help the airline to build high levels of brand loyalty. Delta pilots approved a new contract that includes 34% raises over four years. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Southwest Airlines pays $41,081 per year on average compared to Delta Air Lines which pays $36,132. Southwest has stringent hiring practices and policies to ensure the right mix of team members. Southwest Airlines Co employee benefits and perks data. $17.75 per hour. Boeing also has over 200 of the larger 737-800s, which are far younger and have years of service ahead. Southwest coming to town is a big deal in those markets. "I get this business customer." 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. limited business travel to go around, the recent removal of change fees helps to make United, Delta, and American more competitive for this group. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. Southwest Airlines does not review past postings to determine whether they remain accurate, and information contained in such postings may have been superseded. You may also find the annual proxy statement by going directly to the company's website. Thepicture improved only slightly for the rest of the year; by Q4, ticket sales were still almost69% below 2019 levels. Flight attendant. 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. LUV Sales vs. its Competitors Q3 2022. $39,360 per year. All Employees receive basic term life insurance at no cost. Ithada thriving hub in Fort Lauderdale, but not a single flight from much larger Miami International to the south. But the airport wanted to incentivize new entrants to help recover its costs. When business conditions decline, only the strong survive. Youd look out the window when arriving at one of our maintenance airports like Dallas and see dozens of planes parked in the maintenance hangars. Flying over theVictorville Airport in Californias Mojave Desert, passengers would spy a sea of Southwest heavy metal ribboned in red, yellow, and blue. perform such additional functions as may from time to time be assigned to the Committee by the Board. 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. The airline assembled a list of 50 domestic airports where it wanted to start service. Need to Know. 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. 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. Salaries are taken from job posts or reported by employees and are not adjusted for level or location. Alaska Airlines 8. Employee Focus One of Southwest's competitive advantages is its focus on its employees. Theyre centered around supporting the physical, mental, and financial health and wellbeing of our Employees and their families. Southwest Airlines employees rate the overall compensation . Programs are available to help Southwest Employees live better on and off the job. For decades, Southwest has been able to expand during crises because of its low costs, then come back stronger, says industry expert Robert Mann. 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. 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. We wanted to make our network more dense, to get more connectivity. Yes, the pay is good at Southwest Airlines. Gary Kelly had no visibility. Spirit Airlines 6. Southwest Airlines is more flexible than most other large airlines. None of the information on this page has been provided or approved by Southwest Airlines. On March 13, 2019, the FAA grounded the MAX following the Lion Air and Ethiopian Airlines crashes that killed346passengers. Southwest Airlines is an Equal Opportunity Employer. A career at Southwest Airlines includesseveral benefits and perks, from ourlegendary Culture to travel privileges for Employees and their eligible dependents. To stanch the bleeding,Kelly indeed slashed outlays. All salaries and reviews are posted by employees working at Southwest Airlines vs. United Airlines. We currently don't have any reviews for this employer. Employees can choose from a broad spectrum of investment options and roll over any eligible funds from a previous employer. Its pricing strategy offers extremely low prices compared to other large airlines, such as Delta and American Airlines. Prior to the pandemic, giant OHare wasnt even on Southwests list. Now for the first time, they can fly the largest low-cost carrier from nearby OHare. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. 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. 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. Read reviews from current employees that include compensation and culture insights. Southwest. Its more than just a paycheck. 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. 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. United Airlines began as a mail carrying service, and has turned into one of the most popular airlines in the world. "About This Company" data & logos provided by, Los Angeles County Metropolitan Transportation Authority. They focus on providing the lowest prices for the most popular routes, which means fewer routes will need to be abandon. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Southwest Airlines has set various policies and procedures that make flying with the airline easy. For those interested in conducting a detailed compensation analysis, we recommend that you review the entire proxy statement. Transform pay with our enterprise-grade comp platform, Automate compensation with our full-suite solution, Payscale's employer-reported salary data network, The world`s largest employee-submitted pay database, Annual survey salary data from HR industry publishers, The crowdsourced compensation data API for developers, 100% company submitted data from 2,000+ businesses, Schedule a personalized demo to feel the power of Payscale, Find salary information for similar job titles and locations, Comp Planning Business Case Pitch Deck By clicking Download Pitch Deck, you. 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. We had more customers than we could serve in Denver, Austin, Houston, Fort Lauderdale, Nashville, and more cities, says Kelly. Employees enjoy time off for personal use, vacation, or for the care of themselves or a loved one. The difference in fees made it extremely difficult for a low-cost carrier like Southwest, says Mann. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. We take a deep dive into what's impacting employee retention and what employees are looking for in their new role. Core Competencies in Business: Finding a Competitive Advantage, Overview of Insurtech & Its Impact on the Insurance Industry, Cost Per Available Seat Mile (CASM): Definition, Formula, Example, Value Chain: Definition, Model, Analysis, and Example, business model around low operating costs. 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. Air Canada 9. I dont expect this to happen, but in the endless search for revenue to cover higher costs, nothing should be taken off the table. It said, We have no words to describe the damage. 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. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. Current Employee - Customer Service Representative, Great job if you are good at customer service. Baggage handler. They allow a customer to cancel a reservation up to 10 minutes before the flight's departure. Southwest is the only large U.S. airline that is also a low-cost carrier. Paper enlightens that if a service firm gives priority to its employees than customers, it automatically serves customers in better way as services of a company are given through employees and. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members. Southwest Airlines has a track record for being very forward-thinking.