Southwest Airlines Announces Record Profitsharing Contributions To Employees

“Southwest rewards people who believe in working and playing hard,” said Herb Kelleher, chairman, president and CEO

As part of its legendary commitment to its Employees to offer a unique, supportive and rewarding work environment, Southwest Airlines announced today that its Employees will share a record-setting $138 million in profitsharing. As a result, each Southwest Employee will receive additional tax-deferred compensation in the form of a profitsharing contribution representing 14.1 percent of his/her annual salary. There are 25,119 Employees currently eligible for the plan. Specifically:

* For 1999, an Employee who earned $25,000 will receive $3,525 in profitsharing.

* Including the 1999 contribution, Southwest has contributed more than $700 million to the plan. The value of the plan is in excess of $1.2 billion.
* Southwest Employees have received profitsharing for the past 26 consecutive years.

* Southwest was the first in the U.S. airline industry to introduce a profitsharing plan.


* Southwest has reported annual profits for 27 consecutive years as a result of its dedication to a low cost, high Customer satisfaction strategy.

“The Employees of Southwest work hard each year to ensure our success, and this is a great way to reward them for their efforts,” said Herb Kelleher, Southwest`s chairman, president, and CEO. “Announcing the profitsharing contribution each year is one of my most cherished moments.”

In North Texas, Southwest has 4,721 eligible Employees who will share $30.6 million of the profitsharing. In Arizona, 4,144 eligible Employees will share $25.8 million. In California, 3,278 eligible Employees will share $17.9 million. In Nevada, 629 eligible Employees will share $2.6 million in profitsharing.

Southwest Airlines is an Employer of choice with a sought-after culture, top-notch benefits and ongoing training. Its corporate philosophy encourages Employees to be creative and have fun.

Southwest Airlines offers frequent, low-fare, convenient flights across the U.S. The airline was named the Most Admired Airline in FORTUNE magazine`s 2000 list of Most Admired Companies. Southwest operates nearly 2,600 flights a day with a jet fleet of 312 Boeing 737s.