DALLAS, Feb. 9, 2017 /PRNewswire/ -- Southwest
Airlines Co. (NYSE: LUV) announced yesterday it will
share $586 million through its
ProfitSharing Plan with its Employees for 2016—equaling
approximately 13.2 percent of each eligible Employee's eligible
compensation, or the equivalent of six weeks' pay.
This is Southwest Airlines' 43rd consecutive
ProfitSharing award. For the 2016 plan year, Southwest announced a
new funding structure that will pay part of the ProfitSharing award
to the retirement plan and part in cash. Most employees will
receive 10 percent of eligible compensation as a contribution to
the ProfitSharing Plan and the remainder—approximately 3.2
percent—in cash, both of which will be paid on April 20, 2017. Some employees will receive the
entire ProfitSharing award in the retirement plan as specified in
their collective bargaining agreement.
"Our People-first approach, which has guided our Company since
it was founded, means when our Company does well, our People do
really, really well," said Gary
Kelly, Chairman and CEO of Southwest Airlines. "Our People
work incredibly hard and deserve to share in Southwest's
success."
This $586 million award is
equivalent to more than $1.6 million
a day and will be funded on April 20,
2017. When this ProfitSharing award is added to the
Company's $351 million in Company
contributions to Southwest's 401(k) plans for 2016, Southwest will
have rewarded Employees with approximately $937 million, $852
million of retirement benefits PLUS a cash payment of
$85 million.
Southwest Airlines also invested approximately $746 million in its Employees' other benefits
during 2016, including healthcare coverage, and other welfare and
wellness programs. In total, that's nearly $1.7 billion dedicated to the wealth and
wellbeing of Southwest Employees for 2016 alone, on top of base
salaries.
Southwest was the first in the industry to offer a ProfitSharing
Plan. Through the ProfitSharing Plan, Southwest Employees currently
own more than four percent of the Company's outstanding shares.
ABOUT SOUTHWEST AIRLINES CO.
In its 46th year of service, Dallas-based Southwest Airlines (NYSE:
LUV) continues to differentiate itself from other air carriers with
exemplary Customer Service delivered by more than 53,000 Employees
to more than 100 million Customers annually. Southwest proudly
operates a network of 101 destinations in the United States and eight additional
countries with more than 3,900 departures a day during peak travel
season. Subject to requisite governmental approvals, service to
Grand Cayman begins June 4, 2017, the same date service is scheduled
to begin from Cincinnati.
Based on the U.S. Department of Transportation's most recent
data, Southwest Airlines is the nation's largest carrier in terms
of originating domestic passengers boarded. The Company operates
the largest fleet of Boeing aircraft in the world, the majority of
which are equipped with satellite-based WiFi providing gate-to-gate
connectivity. That connectivity enables Customers to use their
personal devices to view video on-demand movies and television
shows, as well as nearly 20 channels of free, live TV compliments
of our valued Partners. Southwest created
Transfarency®, a philosophy which treats Customers honestly
and fairly, and in which low fares actually stay low. Southwest is
the only major U.S. airline to offer bags fly free® to
everyone (first and second checked pieces of luggage, size and
weight limits apply, some airlines may allow free checked bags on
select routes or for qualified circumstances), and there are no
change fees, though fare differences might apply. The airline
proudly unveiled a bold new look: Heart. A new
logo, aircraft livery, interior design featuring a new seat and
Flight Attendant galley, Employee-designed uniforms, and an updated
airport experience all showcase the dedication of Southwest
Employees who connect Customers with what's important in their
lives.
From its first flights on June 18,
1971, Southwest Airlines launched an era of unprecedented
affordability in air travel described by the U.S. Department of
Transportation as "The Southwest Effect," a lowering of fares and
increase in passenger traffic whenever the carrier enters new
markets. With 44 consecutive years of profitability, Southwest is
one of the most honored airlines in the world, known for a triple
bottom line approach that contributes to the carrier's performance
and productivity, the importance of its People and the communities
they serve, and an overall commitment to efficiency and the planet.
The 2015 Southwest Airlines One Report™ can be found
at SouthwestOneReport.com.
Book Southwest Airlines' low fares online
at Southwest.com or by phone at 800-I-FLY-SWA.
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SOURCE Southwest Airlines Co.