Southwest Airlines Co. (NYSE: LUV) has announced it will share USD 667 million with its Employees through its ProfitSharing Plan for 2019, the company said.
The plan includes a discretionary, incremental profitsharing award for compensation from The Boeing Company related to the 2019 financial impact of the MAX groundings. This USD 667 million profitsharing award is equivalent to USD 1.8 million a day and is more than six weeks´ pay for every eligible Employee.
This reward equals approximately 12.2 percent of each eligible Employee´s eligible compensation. On March 13, 2020 most Employees will receive 10 percent of eligible compensation as a contribution to the ProfitSharing Plan, and the remainder–approximately 2.2 percent–in cash. Some Employees will receive the entire profitsharing award as a contribution to their retirement accounts as specified in their collective bargaining agreements. Combined with the $925 million contributed in health and welfare benefits, as well as $542 million contributed to 401(k) plans, Southwest´s total retirement and benefits contribution to Employees in 2019 was $2.1 billion.
Southwest Airlines Co. (NYSE: LUV) has more than 60,000 Employees serving 130 million passengers annually. In peak travel seasons, Southwest operates more than 4,000 weekday departures among a network of 102 destinations in the United States and 10 additional countries.