Southwest Airlines’ 41st Consecutive Profitsharing Payment is Record Dollar Amount-$355 Million
DALLAS, Feb. 5, 2015 /3BL Media/ —Southwest Airlines® (NYSE: LUV) today announced it will share $355 million through its ProfitSharing Plan with its Employees for 2014—equaling approximately 9.6 percent of each eligible Employee’s eligible compensation, or the equivalent of five weeks’ pay. This $355 million contribution—nearly $1 million a day—is the largest total dollar amount Southwest has ever allocated to ProfitSharing. Not only is this amount $127 million more than the previous record, set with last year’s contribution of $228 million, but it’s also more than the last two years of ProfitSharing combined—an increase of 56 percent compared with 2013. Since its inception, Southwest Airlines has shared more than $2.8 billion with its Employees through ProfitSharing—and almost $1 billion in the past six years alone.
“Last year was chock-full of historic milestones and monumental accomplishments, and I’m immensely proud and grateful for our People who worked so hard to make it happen. It was truly a heroic effort,” said Gary Kelly, Chairman, President, and CEO of Southwest Airlines. “Our Employees take ownership in our success, and when the Company does well, our People do well. Because of them, we can realistically aspire to fulfill our Vision of becoming the World’s Most Loved, Most Flown, and Most Profitable Airline.”
When this ProfitSharing contribution is added to the Company’s $289 million in Company match and other amounts contributed to the Southwest and AirTran 401(k) retirement plans, Southwest will have rewarded Employees with a 2014 total retirement benefit of approximately $644 million. In addition to retirement contributions, Southwest Airlines also invested approximately $618 million in its Employees’ other benefits during 2014, including healthcare coverage, and other welfare and wellness programs. In total, that’s nearly $1.3 billion dedicated to the wealth and wellbeing of Southwest Employees in 2014 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 44th 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 46,000 Employees to more than 100 million Customers annually. Southwest operates more than 3,400 flights a day, serving 93 destinations across the United States and five additional countries. Subject to government approvals, Southwest service to San Jose, Costa Rica, begins in March 2015; service to Puerto Vallarta, Mexico, begins in June 2015; and service to Belize City, Belize begins in October 2015.
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 while over the United States. That connectivity enables Customers to use their personal devices to access streaming music provided by Beats Music or 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 is the only major U.S. airline to offer Bags Fly Free® (first and second checked pieces of luggage, size and weight limits apply), and there are never change fees, although fare differences might apply. In 2014, the airline proudly unveiled a bold new look: Heart. The new aircraft livery, airport experience, and logo, showcase the dedication of Southwest Employees to 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 wherever the carrier serves. With 42 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 2013 Southwest Airlines One Report™ can be found at Southwest.com/citizenship.
Book Southwest Airlines' low fares online at Southwest.com or by phone at 800-I-FLY-SWA.
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