Southwest Airlines to share proceeds from Boeing agreement with employees

Southwest Airlines has recently reached a confidential agreement with Boeing to compensate Southwest for a portion of projected financial damages related to the grounding of the airline’s Boeing 737 MAX aircraft. In light of this agreement, the Southwest Board of Directors has authorized a discretionary, incremental profit sharing accrual for employees, which is tied to the projected reduction in operating income for annual 2019 due to the MAX groundings. Southwest currently estimates this incremental profit sharing accrual to be approximately $125 million. Gary C. Kelly, Chairman of the Board and Chief Executive Officer, stated, “Our people have done an incredible