MIAMI — Southwest Airlines Board of Directors announced its plans to celebrate the recent tax reform legislation by authorizing a bonus to all employees.
All full-time and part-time Southwest Employees by December 31, 2017, will receive a $1,000 cash bonus on January 8, 2018.
“We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular,” said Southwest’s Chairman and Chief Executive Officer Gary Kelly.
“We are excited about the savings and additional capital, which we intend to put to work in several forms—to reward our hard-working employees, to reinvest in our business, to reward our shareholders, and to keep our costs and fares low for our customers,” he added.
Kelly continued, “I am also proud to report that we have donated an incremental $5 million to charitable causes as a result of tax reform. Throughout 2018, we will work with our charitable partnerships to put this money to work in the communities we serve and where our employees work and live.”
I’m proud to report we are rewarding our Employees with a $1,000 bonus with the anticipated savings from the tax reform legislation, we are contributing an additional $5 million in charitable donations, and we are making investments in our fleet and our business. pic.twitter.com/h4GVqRrXzX
— Gary Kelly (@gary_kelly) January 2, 2018
Additionally, Southwest announced it is increasing its fleet investment with Boeing for a modernization “at favorable economics.”
The carrier exercised 40 Boeing 737 MAX 8 options for 15 firm orders in 2019 and 25 firm orders in 2020. Also, Southwest deferred 23 Boeing 737 MAX 7 in order from 2019 through 2021 to 12 firm orders in 2023 and 11 in 2024.
Southwest operated an all-Boeing fleet of 705 aircraft composed by 511 737-700, 181 737-800 and 13 737 MAX 8. It will also be the launch customer of the 737 MAX 7, scheduled to enter service on 2019.