Unbeknownst to each other, both Southwest and American Airlines just announced that the companies would be awarding their employees with a $1,000 additional bonus due to the recent passage of the GOP tax bill.
“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,” Southwest’s CEO Gary Kelly said in a statement. “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.”
“Recent tax reform has received much publicity. While the company does not yet pay cash taxes due to our enormous losses in the past, there is no doubt that our country‘s new tax structure will have positive long-term benefits for American,” American Airlines wrote in a statement to its employees. “We will be able to invest even more in aircraft and facilities and we will be able to do so with even greater confidence about the future. As we analyze those potential future benefits, our leadership team, backed by our Board of Directors considered how a portion of that positive impact might be directly shared with the very people who produce the profits at American – all of you.”