American, Southwest employees to get USD1,000 tax bill bonus
The two Dallas based airlines are giving employees a New Year gift thanks to their tax-bill windfall.
American Airlines and Southwest Airlines both said they would hand out $1,000 to each employee.
American said that would cost the company about $130 million.
It comes thanks to the new tax reform bill that President Donald Trump signed into law last month.
Southwest said it would pay a flat $1,000 to all full time and part time workers.
Southwest also said it is giving an extra $5 million to charities and taking options for 40 Boeing 737 MAX 8 jets while deferring an original order for the smaller MAX 7 variant.
"We are excited about the savings and additional capital, which we intend to put to work in several forms," Southwest CEO Gary Kelly said.
Unlike almost all other carriers which have entered bankruptcy sometime in the past, Southwest has always been profitable and paid federal income tax so will see an immediate benefit of the new law.
President Trump tweeted it was ‘really great’ the airlines are passing on the tax savings to their workforce.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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