Spare_change
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- Jun 27, 2011
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Airlines are sharing some of their tax-law windfall with employees and Boeing, the big aircraft maker.
American and Southwest said Tuesday that they will pay employees bonuses of $1,000 each, a gesture that American said would cost $130 million.
Southwest also said that it exercised options to buy more new jets from Boeing while delaying orders for some others.
Unlike most other U.S. airlines, Dallas-based Southwest has long been profitable and already pays cash income taxes. It earned $1.6 billion in the first nine months of 2017, and will benefit immediately from the lower rate on corporate income in the tax bill that President Donald Trump signed last month.
American and Southwest said Tuesday that they will pay employees bonuses of $1,000 each, a gesture that American said would cost $130 million.
Southwest also said that it exercised options to buy more new jets from Boeing while delaying orders for some others.
Unlike most other U.S. airlines, Dallas-based Southwest has long been profitable and already pays cash income taxes. It earned $1.6 billion in the first nine months of 2017, and will benefit immediately from the lower rate on corporate income in the tax bill that President Donald Trump signed last month.
