Southwest Announces Employee Bonuses Despite Profit Taking a Hit

Southwest Airlines announced that it is giving 60,000 employees a $667 million profit-sharing bonus.

For some eligible employees, this means that they will receive a check for 12.2 percent of their annual salary, or approximately an additional six weeks of pay, according to a report on CNN Business.

Southwest had many challenges in 2019 but still showed a profit in the end.

“Our employees delivered outstanding results despite a challenging year, and it’s a pleasure to reward our people for all they contribute to our continued success,” said Southwest Airlines CEO Gary Kelly in a statement.

Profits fell 6.7 percent after several federal investigations and the grounding of the Boeing 737 Max aircraft. Boeing compensated Southwest in an undisclosed settlement for the loss of the 737 Max and reports say that approximately $125 million of the bonus comes from that settlement.

Southwest was the first airline to implement profit-sharing bonuses, something it has been doing for 46 years.