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. That pullback allowed Southwest to realize what it had only dreamed ofgrabbing gates at the nations third-busiest airport. 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. The highest reported salary for an employee at Southwest Airlines Co is currently $141k / year, Southwest Airlines Co offers some retirement and welfare benefits. Pay, Whether you are hiring a single employee , or an entire department of, The labor market is a strange place right now. We had to make the flight anyway so that the plane could make the return trip.. 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. Employee Focus One of Southwest's competitive advantages is its focus on its employees. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. The data presented on this page does not represent the view of Southwest Airlines and its employees or that of Zippia. Then Kelly planned to launch a long-term offensive in the U.S. by flying to new places. One of these is Southwest's cancellation policy. According to this theory, large airlines will experience declines, but they will not actually go out of business. Eligible dependents include spouse or committed/registered partner, eligible dependent children under 19 years old (or up to 24 if a full-time student), and parents. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Southwest Airlines has set various policies and procedures that make flying with the airline easy. Southwest had to build its business model around low operating costs to be able to offer low prices. 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 in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. In two in-depth interviews withFortune, Kelly described how Southwest navigated the pandemic. Fees for check baggage are a signifiant part of. All Rights Reserved. At Southwest Airlines, the employees are paid different salaries depending on their location. 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.. When were looking for leisure customers, the best places are those smaller locales, says Watterson. The airline assembled a list of 50 domestic airports where it wanted to start service. Boeing also has over 200 of the larger 737-800s, which are far younger and have years of service ahead. Before the crisis, OHare wasnt even on Southwests wish list. Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Pre-COVID, Southwest was serving markets that sold a total of $63 billion in tickets a year. 4.0. We want to set up our People, both present and future, to achieve their professional goals. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. Dominating its current fleet is the aging Boeing 737-700, averaging 12 years in the skies. We were flying around the country with four or five passengers on the737-700 and 800s that carry 143 and 175 passengers,White tellsFortune. This is especially true in the uncertain demand environment that all airlines face today. This time, Kelly, whose 17-year tenure makes him the longest-serving CEO for a major U.S. carrier, couldnt even guess at how long the mysterious virus would ground Americas travelers. Now in its 50s, Southwest has lost some key competitive advantages but also gained some new ones. Delta Air Lines employees rated their Recommend to a friend 8% 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. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. He curbed such capital expenditures as tech investments and airport expansions. 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). Entering the recovery, it will reach airports that do another $13 billion in business, a jump of 20% in what Watterson calls the pond we can fish in. The upshot: Kelly predicts that the surge in leisure travelers could by 2022 more than offset the decline in business traffic, lifting Southwest back to 2019 levels well before its big competitors get there. 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. Miamis taking off like a rocket, he says. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. Learn more about each company and apply to jobs near you. Using theSWAG platform, Employees can send a quick note of gratitude (we all call themKick Tails. Based on our research, similar companies to Southwest Airlines are PSA Airlines, Expeditors, and American Airlines. Opinions expressed by Forbes Contributors are their own. Southwest Airlines pays $41,081 per year on average compared to Delta Air Lines which pays $36,132. Dental coverage options include preventive, basic, major, and orthodontic care. 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. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. Southwest Airlines' strategy emphasizes recruiting and retaining motivated employees. Southwest Airlines employees rate the overall compensation . The employees at Expeditors earn an average yearly salary of $45,974 per year, and the salaries at American Airlines average $45,470 per year. 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. In the spring, youd walk throughChicago Midway, one of Southwests busiest hubs, and see 15 people, says White. While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. A manager, custom support and services at Southwest Airlines earns an average yearly salary of $27,625. Which benefits does Southwest Airlines provide? Find information about retirement plans, insurance benefits, paid time off, reviews, 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. We believe that Southwest Employees have the best contracts in the industry and that they are very well compensated. Save for retirement through our 401(k) Plan with pre-tax or Roth after-tax contributions. Spirit Airlines 6. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following CEO pay ratio data on its annual proxy statement to the SEC. Other roles at Southwest Airlines include manager, custom support and services and cashier. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. If Southwest does lose some of its significant business base as a result of the change fee going away, baggage would be an obvious place for it to recover some of that lost revenue. Southwest has achieved its biggest expansion ever in its deepest downturn just as it prepares to celebrate its 50th anniversary on June 18. What percentage of Southwest's workforce is unionized? Eligible dependents include spouse or committed/registered partner, eligible dependent children under 19 years old (or up to 24 if a full-time student), and parents. It has pushed the industry in many positive trends, but this is an aggressive industry. It said, We have no words to describe the damage. 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. Flight attendant. Though most of the markets were small, Kelly figured that adding a lot of them fast would enable Southwest to expand more rapidly than under the original plan, where it would move slowly and deliberately by adding a couple of new airports a year. This reward equals approximately 12.2 percent of each eligible Employee's eligible compensation. 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. 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. We wanted to make our network more dense, to get more connectivity. 4.3 out of 5 stars for Compensation/Benefits. One said to the other You know what I like about flying Southwest? Together, along with a little over $100,000 in other gifts and compensations, he made $5.7 million in 2021. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. By contrast, the global industry lost 400,000 workers, and American alone laid off 32,000. I write about airlines and travel to explain this crazy industry. Just as it had to adopt its model as the. Both tied in 1 area: Diversity & Inclusion. Current Employee - Customer Service Representative, Great job if you are good at customer service. Use our tool to get a personalized report on your market worth. 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. February 27, 2023 new bill passed in nj for inmates 2022 No Comments . 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. In the past, that didnt happen because the airport was chockablock with takeoffs and landings. 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. Here's more information on Southwest Airlines' competitors : #1. Still, Southwests balance sheet is in the best shape by far among the majors. 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. Cancel. Unless directed by the full Board, it is not the Committees responsibility to conduct investigations. The lifeline saved Southwest from imposing the first layoffs and pay reductions in its history, six months before the 50-year mark. United Airlines partners with smaller airlines across the . The higher paying positions at Southwest Airlines include senior software engineer, lead technician, senior java developer, and devops engineer. Now Southwest is backing its growth plans with the most ambitious aircraft expansion program of any major. But at the same time, he showed the vision and moxie to pursue a superambitious flight plan for growth. 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 holds the most cash and carries the lowest debt of the major carriers. Id never read a message from the finance staff anything like that dark. Community outreach For more than 50 years, Southwest has connected People and championed communities. 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. Noncontract Employees receive coverage from a Company-paid short-term disability plan if an illness or injury lasts more than one week. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Southwest is a great airline and has been for many years. 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. Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. The finance organizational function also pays relatively high compared to other departments, where employees earn $77,729. 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. 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. Zippia gives an in-depth look into the details of Southwest Airlines, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Southwest Airlines. Southwest Airlines' business model is based on extremely efficient operations, low-cost pricing, and innovative logistics solutions. 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. Even after the voluntary programs took effect, Southwest was still far overstaffed. perform such additional functions as may from time to time be assigned to the Committee by the Board. frontier airlines ceo salary. Southwest plans to hire 8,000 workers this year after hiring more than 5,000 at the end of 2020. They allow a customer to cancel a. Southwest Airlines pays $19.75 an hour, on average. On March 13, 2019, the FAA grounded the MAX following the Lion Air and Ethiopian Airlines crashes that killed346passengers. Read reviews from current employees that include compensation and culture insights. The amount of time off varies depending on your workgroup and years of service. United Airlines began as a mail carrying service, and has turned into one of the most popular airlines in the world. Low-cost carriers, such as Southwest, have several critical advantages over their 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. Southwest Airlines pays employees the most in San Jose, CA and Seattle, WA. For more than 50 years, Southwest has connected People and championed communities. The shockwaves from two of the worst tragedies in airline history left Southwest short of the horses needed for the charge. Need to Know. Use of the Southwest websites and our Company Information That works out to $19.75 per hour at Southwest Airlines, compared to $17.37 per hour at Delta Air Lines. Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. Job Security/Advancement. How do Southwest Employees wages, benefits, and work rules compare to other airlines in the U.S.? Southwest. Bob Jordan formerly worked as the Executive Vice President of Southwest Airlines, where his salary was $3,049,336. Suddenly, that new arrangement hasmade Miami much more attractive to low-cost competition. In Chicago, Southwest had longbeen the dominant carrier in Midway. A typical senior software engineer salary at Southwest Airlines is $120,951. Salaries are taken from job posts or reported by employees and are not adjusted for level or location. 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. Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. Overall rating 4.2 Based on 3645 reviews 4.2 Culture & Values Powered and implemented by Interactive Data Managed Solutions. At Southwest Airlines, employees working in engineering jobs and finance jobs tend to earn the highest salaries. $18.45 per hour. Clayton White, a veteran flight attendant, shares vivid memories of the year that grounded Americas road warriors and vacationers. Our Career Mobility Center helps Employees proactively prepare for internal career opportunities through services like individual career advising sessions, interview preparation resources, and virtual days in the field. 2022 Southwest Airlines Co. All Rights Reserved. Compare. In 2021, Southwest Airlines employed over 55,000 full-time equivalent employees (FTE). At Southwest, you're empowered to create your own career; one that fits the goalsand lifestyleyou want. 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. 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. One way of measuring strength is size. Now, Southwest is offeringa total of20 nonstopflights a day to Dallas, Denver, Nashville, Phoenix, and Baltimore/Washingon. Those two things allow the other airlines to serve markets Southwest cant, including smaller U.S. cities and cities across the globe, and they result in higher costs. The competitive advantages Southwest enjoys today center mostly around the features that let it win corporate travel business against the global networks of American, United and Delta. 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? Investopedia does not include all offers available in the marketplace. FORTUNE may receive compensation for some links to products and services on this website. 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.. Kelly took the idle planes off the tarmac andback to work, laying the groundwork for a fast ascentonce the crisis lifted. The recent cancellation of most domestic change fees will be a tough one to lose, however. It was a great way to help us offset big fixed costs thatare impossible to cut, says Kelly. See how working at Delta Air Lines vs. Southwest Airlines compares on a variety of workplace factors. 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. Southwest Airlines is approximately 83 percent unionized. 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. Employees enjoy time off for personal use, vacation, or for the care of themselves or a loved one. One hundred people in personnel went to other jobs across the company, such as keeping maintenance records, says Jordan. One time on a scheduled flight from Chicago to Houston, four people were booked, and nobody showed up. This cost pressure has caused Southwest to move into major airports like New Yorks LaGuardia and Reagan National in D.C. Theyve paid for slots to get into these airports, where the younger Southwest avoided airports like these both for cost reasons and operational efficiency. Employees share in the success of Southwest with our ProfitSharing Plan, which rewards them for their contributions to Southwests profitability. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. Its unit costs are lower than the big three, but it also doesnt have the international network or fleet complexity. Southwest Airlines has a track record for being very forward-thinking. As adopted by the Board of Directors of Southwest Airlines Co. on February 2, 2022. Southwest Airlines Co employee benefits and perks data. 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. 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. But United aimed right at this and said no more.. Theyd never seen that from Southwest before. If the unions didnt come through, the workforce would shrink by 6,000, or over 10%. It only has a few aircraft types, which helps the airline reduce its costs. 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. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. 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. "I get this business customer." Adds Watterson: We were looking for ways to keep people busy and reduce cash burn.. You get to bat in a crisis a couple of times in 50 years, and how you do proves what you stand for or disproves it, he said. 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. For its 2021 fiscal year, SOUTHWEST AIRLINES CO, listed the following board members on its annual proxy statement to the SEC. The losses swelled Southwests debt level from a slender$1.85 billion at the close of 2019 to $10.55 billion in Q1. Salaries at Southwest Airlines can vary depending on the department or organizational function. Forward-looking statements are based on, and include statements about, the Companys beliefs, intentions, expectations, and strategies for the future. But the color that accompanied the report for the week of April 5, 2020, evoked the lowest of low-down blues. I echoed what Herb Kelleher said during 9/11, says Kelly. We thought getting into OHare would be impossible, says Watterson. Wed regularly book 40people on the busiest routes, and 16 would board. Still, Southwest was hemorrhaging so much cash, for so long, that it came darn close to breaking that hallowed tradition, just as the half-century mark approached. In Miami, Southwest benefited from anotherbreakthroughcourtesy of the crisis. Try another search query or. In addition, the Committee shall have the powers, authority, duties, and responsibilities described below. In that same year, revenue from its non-loyalty passenger segment . We were planning hundreds of aircraft worth of growth. The blueprint called for around three or four new destinations a year. This report is not for commercial use. 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 Southwest is always looking for lower-cost solutions, and that is more important than ever before. Southwest has stringent hiring practices and policies to ensure the right mix of team members. Southwest Employees can visit almost any corner of the world with generous travel privileges and turn recognition into something meaningful with SWAG Points. Southwest Airlines Employees in Seattle, WA don't earn quite as much. Gained a lot of experience, met so many new people, networked a lot, I miss it very much. The Committee shall also meet periodically in executive sessions without the presence of management. What Is The Salary Of The Ceo Of Southwest Airlines? With net margin of 4.45 % company . At the national level, Southwest makes a positive impact on our communities by supporting a number of issues through our charitable relationships. It also services smaller airports that don't charge as much for gate access. "Refunds For Flight Reservations.". 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 Companys executives and other employees, as well as non-employee members of the Board; (ii) succession planning; and (iii) human resources policies and practices. That quietly went away as Southwest has taken the lead over the last number of years in raising fares, especially as they have become more dominant in their biggest operational geographies. Before you decide whether variable pay is right for your org, get a deeper understanding of the variable pay options and the cultural impact of pay choices. The early-retirement packages included cash buyouts plus generous health and travel benefits. But long ago they used to advertise that their highest fare was $299. Southwest Airlines does not review past postings to determine whether they remain accurate, and information contained in such postings may have been superseded. It's no secret that workers earn different salaries in different parts of the country, since the cost of living can be much higher in certain areas. The salary of the CEO of Southwest Airlines, Mark King, is $5.7 million.