Southwest Airlines Announces Bonuses, New Investment
DALLAS (CBSDFW.COM) - Southwest Airlines announced Tuesday the company's plans to celebrate the new tax reform law President Trump signed right before Christmas.
The Southwest Board of Directors authorized a bonus to all Southwest Airlines employees to celebrate the recent passage of the tax reform legislation. All full-time and part-time Southwest employees with Southwest on Dec. 31, 2017, will receive a $1,000 cash bonus on Jan. 8, 2018.
"We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular," said Southwest's Chairman and Chief Executive Officer Gary Kelly. "We are excited about the savings and additional capital, which we intend to put to work in several forms—to reward our hard-working employees, to reinvest in our business, to reward our shareholders, and to keep our costs and fares low for our customers."
Kelly continued, "I am also proud to report that we have donated an incremental $5 million to charitable causes as a result of tax reform. Throughout 2018, we will work with our charitable partnerships to put this money to work in the communities we serve and where our Employees work and live."
Southwest says it is also is increasing its fleet investment with its longtime business partner, Boeing, to support future growth opportunities and fleet modernization at favorable economics.
The company exercised 40 Boeing 737 MAX 8 options for 15 firm orders in 2019 and 25 firm orders in 2020, and deferred 23 Boeing 737 MAX 7 firm orders from 2019 through 2021 to 12 firm orders in 2023 and 11 firm orders in 2024.
Later Tuesday, American Airlines also announced a $1,000 bonus for its employees, including the regional carriers it owns.
