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March 10, 2020, 8:43 a.m. EDT

Southwest CEO to take 10% pay cut in response to 'severe recession' for industry from COVID-19: report

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By Tomi Kilgore

Southwest Airlines Co. /zigman2/quotes/201071949/composite LUV -0.80% Chief Executive Gary Kelly told the airline's employees that he will take a 10% pay cut, as the company faces the worst downturn in decades as a result of the coronavirus outbreak, according to a report by the Wall Street Journal . Southwest's stock rose 2.7% in premarket trading, after falling 4.6% on Monday. Kelly said the situation was resulting in a "financial crisis" for Southwest and a "severe recession" for the airline industry, the report said, citing a video message to employees that the newspaper reviewed. Last week, Southwest had said the COVID-19 outbreak could reduce first-quarter operating revenue by up to $300 million. Kelly's comments Tuesday come as several airlines warned of significant impacts to operations from the COVID-19 outbreak, including announcements from Delta Air Lines Inc. /zigman2/quotes/200327741/composite DAL -1.65% , Spirit Airlines Inc. /zigman2/quotes/205782179/composite SAVE +0.73% , American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL -0.06% , Qantas Airways Ltd. /zigman2/quotes/205534063/delayed AU:QAN 0.00% and Air France-KLM /zigman2/quotes/205396176/delayed FR:AF -2.47% /zigman2/quotes/209433148/delayed AFRAF -1.46% .

/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 47.39
-0.38 -0.80%
Volume: 4.81M
Jan. 22, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$27.98 billion
Rev. per Employee
$368,882
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/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 40.00
-0.67 -1.65%
Volume: 11.31M
Jan. 22, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$25.51 billion
Rev. per Employee
N/A
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/zigman2/quotes/205782179/composite
US : U.S.: NYSE
$ 27.67
+0.20 +0.73%
Volume: 3.08M
Jan. 22, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.70 billion
Rev. per Employee
$428,567
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/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 15.82
-0.01 -0.06%
Volume: 39.13M
Jan. 22, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$9.57 billion
Rev. per Employee
$342,319
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/zigman2/quotes/205534063/delayed
AU : Australia: Sydney
$ 4.85
0.00 0.00%
Volume: 7.99M
Jan. 22, 2021 4:10p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$9.10 billion
Rev. per Employee
$568,765
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/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
4.70
-0.12 -2.47%
Volume: 4.99M
Jan. 22, 2021 5:39p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€2.01 billion
Rev. per Employee
€300,799
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/zigman2/quotes/209433148/delayed
US : U.S.: OTC
$ 5.73
-0.09 -1.46%
Volume: 4,858
Jan. 22, 2021 1:19p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.45 billion
Rev. per Employee
$336,669
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