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

Southwest holds the most cash and carries the lowest debt of the major carriers. Southwest Airlines may also be known as or be related to Southwest, Southwest Airlines, Southwest Airlines Co and Southwest Airlines Co. The company has about 54,000 workers nationwide, including 1,000 in North Texas at its corporate. 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. 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. Southwest was already flying 34 of the MAX and had 26 more on order for the year, meaning that its total fleet for2019 was almost 10% smaller than expected. Southwest Airlines is approximately 83 percent unionized. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. Negative economic growth will also make businesses and consumers more sensitive to ticket prices, the low-cost airlines' primary advantage. Headquarters: Chicago, Illinois, United States. $17.75 per hour. All salaries and reviews are posted by employees working at Delta Air Lines vs. Southwest Airlines. Factors that could cause these differences include, but are not limited to, the factors described under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in other filings, and as described in the press releases and other materials contained on this website. 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? Delta Air Lines 2. Southwest is a great airline and has been for many years. Kelly took the idle planes off the tarmac andback to work, laying the groundwork for a fast ascentonce the crisis lifted. A comeback on that scale would be heroic, considering the depth of the drop, and how long the pandemic crunched air travel to the levels of the 1970s. Readers should not assume that the information contained on this site has been updated or otherwise contains current information. 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. We almost lost a zero, says Bob Jordan,EVP of corporate services. 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. But in the pandemic, the carriers at OHare were operating maybe one-third of their regular flights. Average Southwest Airlines Salary $41,081 yearly $19.75 hourly Updated November 18, 2022 American Airlines. , Mar 11, 2022. 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. Employees can save money by making tax-free contributions to flexible spending accounts for health-care and dependent childcare. FORTUNE may receive compensation for some links to products and services on this website. For details regarding Direct Stock Purchase & Dividend Reinvestment and other Transfer Agent information. From 2020 to 2024, we planned on a big, five-year growth run.. 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. Any company operating in the airline industry must maintain and strengthen a set of competitive advantages that differentiate it from its competitors. The timing of these postings are made at the discretion of Southwest Airlines. 4.0. But United aimed right at this and said no more.. All proxy statements are public filings made available to the general public by the SEC. Thorough reviews have been conducted to assure this data accurately reflects disclosures. 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. The recent cancellation of most domestic change fees will be a tough one to lose, however. Job Security/Advancement. Southwest is a great airline and has been for many years. 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. Employees choose from medical coverage options ranging from preferred provider organizations (PPOs) to a high deductible health plan. JetBlue Airways 5. Delta Air Lines employees rated their Recommend to a friend 8% higher than Southwest Airlines employees rated theirs. Salaries at Southwest Airlines can vary depending on the department or organizational function. 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. 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 has achieved its biggest expansion ever in its deepest downturn just as it prepares to celebrate its 50th anniversary on June 18. Southwest offers an excellent benefits package, including a generous dollar-for-dollar Company match in the 401 (k) Plan, subject to vesting requirements and certain compensation limits, as well as a ProfitSharing Plan. 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,. [ 2] Here is an in-depth analysis of top Southwest's competitors and alternatives: 1. Employee Focus One of Southwest's competitive advantages is its focus on its employees. 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. If Southwest exercises all optionsa strong possibility if its growth opportunities match Kellys expectationsit could operate a fleet of almost 1,100 planes in 10 years, an increase in capacity of 50%. 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. 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. Boeing also has over 200 of the larger 737-800s, which are far younger and have years of service ahead. I dont expect this to happen, but in the endless search for revenue to cover higher costs, nothing should be taken off the table. 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. Thepicture improved only slightly for the rest of the year; by Q4, ticket sales were still almost69% below 2019 levels. Customer service representative. 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. Today, Southwest is the third-largest airline globally and serves more than 100 million passengers annually. Find salaries . Cost per available seat mile (CASM) is a measure of an airplane's cost to operate and ability to generate revenues. 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. Air Canada 9. Qualitative analysis evaluates a company's unquantifiable aspects such as management style and worker loyalty. Use of the Southwest websites and our Company Information constitutes acceptance of our Terms & Conditions, Privacy Policy. There are many reasons that United, followed quickly by Delta and American, chose to cancel change fees for higher-fare paying customers. We came into 2019 with very strong growth opportunities, says CFO Tammy Romo. It is how the company handles the risks and uncertainties . Salaries at Southwest Airlines Co range from an average of $51,903 to $141,342 a year. 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 Southwest Airlines and United Airlines employees and others in your industry. Delta Air Lines scored higher in 6 areas: Overall Rating, Work-life balance, Senior Management, CEO Approval, Recommend to a friend and Positive Business Outlook. In addition, it is not the Committees responsibility to assure that the Company complies with specific legal requirements of the Companys policies. Recognition is a cornerstone of our Culture. The point here is that for narrow body service within the U.S., Southwests cost advantage to the big three U.S. airlines has largely gone away the big carriers costs where they fly against Southwest are similar. 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. A typical senior software engineer salary at Southwest Airlines is $120,951. The airline couldn't managed to keep its . Southwest Airlines pays employees the most in San Jose, CA and Seattle, WA. Southwest. 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. Community Giving Boards comprised of local Employees decide how Southwest gives back to charities in their neighborhoods, tapping into the passion points of their community. Put simply, Kelly grabbed plans off the shelf scheduled to take five years or more and exploited the pandemic to fast-track thecampaign. As Americans line up once again at the ticket counters, its likely that Southwest will begin its second half-century in a much stronger position versus American, United, and Delta than before the pandemic. That puts the company in a better position to deal with the disruptions caused by economic events that are beyond its control. Southwest Airlines co-founder Herb Kelleher said " the business of business is people ," and Southwest's leadership still takes that message to heart. But it also encompassed a secondfront, a major push in markets where Southwest was already strong, but could fly far more customers by adding flights. 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. SOUTHWEST AIRLINES CO annual reports of executive compensation and pay are most commonly found in the Def 14a documents. Use of the Southwest websites and our Company Information Per its business model, Southwest hires employees who embody the company's brand messaging and who have a passion for helping customers. Kelly views a full workforce thats ready to go and growas essential to capitalizing on its move into those 17 new markets, soon to increase to 18 with the addition of Syracuse. This compensation may impact how and where listings appear. Southwest Airlines scored higher in 1 area: Compensation & Benefits. $53,200 per year. This $667 million profitsharing award is equivalent to $1.8 million a day and is more than six weeks' pay for every eligible Employee. 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. The MAXs burn14%less jet fuel, and are40%quieter, than their Boeing predecessors. 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. New research shows that each woman experiences the disparity of gender pay gap in different ways, depending on her position, age, race and education. 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. A manager, custom support and services at Southwest Airlines earns an average yearly salary of $27,625. That means Southwest has bigger reserves in cash, credit, and other assets than smaller airlines. The Air Line Pilots Association . 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. The second: extended time off, or ETO, in whichemployees could elect to stop working for six, 12, or 18 months at half-pay. Dental coverage options include preventive, basic, major, and orthodontic care. 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. 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. Using theSWAG platform, Employees can send a quick note of gratitude (we all call themKick Tails. 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. Offers may be subject to change without notice. Need to Know. The higher paying positions at Southwest Airlines include senior software engineer, lead technician, senior java developer, and devops engineer. Miss the industry alot. 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. A business model is a company's profit-making plan which defines the products or services it will sell, its target market, and any expected costs. 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 . 4.0. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. 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. But when its rivals pulled back, precious landing slots opened, and Kelly pounced. Based on our analysis, the employees in engineering earn salaries at Southwest Airlines that are well above average, with yearly earnings averaging $104,949. Southwest Airlines also has one of the better rewards programs in the industry. 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. The Committee shall consist of at least two members of the Board, each of whom shall meet applicable independence requirements of the New York Stock Exchange. But they could reach that goal through a variety of routes, by imposing layoffs, reducing pay, or hiking productivity, or a blend of all three. In 2015, Southwest Airlines became the leading carrier in terms of market share and surpassed its main competitors, American Airlines and Delta Air Lines. SOUTHWEST AIRLINES CO income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. They now sit at the high-fare poker table with a suddenly weaker hand. And thats what happened. You may also find the annual proxy statement by going directly to the company's website. Rank Company Name Zippia Score Average Salary; 1: PSA Airlines: 4.9: $46,385: 2: Expeditors: 4.6: . The early-retirement packages included cash buyouts plus generous health and travel benefits. But the City of Chicago controlled a number of gates at OHare and deemedthat if those gates went mainly unused, newcomers could step in. 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. 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. Southwest Employees recieve access to unique, engaging, and modern development opportunities including in-person classes, online content, mentor programs, and more! 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 I write about airlines and travel to explain this crazy industry. 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. 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. That change significantly lowers Southwests overall costs, shrinking the gap with Fort Lauderdale. The beauty of the time-off program is the ability to ramp up quickly, says Jordan. SOUTHWEST AIRLINES 2 Evaluate a company's recent (within the last year) actions dealing with risk and uncertainty. The FAA approved the737 MAX to fly again in December, and by March Southwests MAX fleet had returned to service. Yet he always returns to the human factor, the view that the assets the carrier most prizes are its people. Why do people leave their jobs? All Employees receive basic term life insurance at no cost. We had no plan for starting service there at all.. At the time,it planned only one addition, Houston Intercontinental, for early 2021, as part of the fanfare for Southwests 50th anniversary, since it had flown there in the early days before moving to smaller William P. Hobby Airport. However, there are many more factors that go into this competitive advantage. Nevertheless, Southwest has managed to beat the odds, with a 96% retention rate, 44 straight years of profitability, and no layoffs in their history. Before the crisis, OHare wasnt even on Southwests wish list. He achieved that feat by deploying planes parked at desert airfields, and crews grounded by the pandemic, thatSouthwest still paid for, and dispatching them to thenew routes, a gambit that brought sorely needed revenue. A part of our Company Promise is to provide a stable work environment with equal opportunity for learning and growth. 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.