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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 +5.63% 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 +7.80% , Spirit Airlines Inc. /zigman2/quotes/205782179/composite SAVE +19.46% , American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL +5.61% , Qantas Airways Ltd. /zigman2/quotes/205534063/delayed AU:QAN +8.35% and Air France-KLM /zigman2/quotes/205396176/delayed FR:AF +10.11% /zigman2/quotes/209433148/composite AFRAF +1.88% .

/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 36.42
+1.94 +5.63%
Volume: 26.64M
June 3, 2020 4:00p
P/E Ratio
10.73
Dividend Yield
0.00%
Market Cap
$21.47 billion
Rev. per Employee
$373,554
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/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 28.47
+2.06 +7.80%
Volume: 65.01M
June 3, 2020 4:00p
P/E Ratio
5.29
Dividend Yield
0.00%
Market Cap
$18.16 billion
Rev. per Employee
$499,337
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/zigman2/quotes/205782179/composite
US : U.S.: NYSE
$ 17.31
+2.82 +19.46%
Volume: 61.74M
June 3, 2020 4:00p
P/E Ratio
4.72
Dividend Yield
N/A
Market Cap
$1.53 billion
Rev. per Employee
$431,115
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/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 11.85
+0.63 +5.61%
Volume: 86.69M
June 3, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$5.01 billion
Rev. per Employee
$345,547
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/zigman2/quotes/205534063/delayed
AU : Australia: Sydney
$ 4.54
+0.35 +8.35%
Volume: 30.93M
June 4, 2020 3:54p
P/E Ratio
8.51
Dividend Yield
5.84%
Market Cap
$6.14 billion
Rev. per Employee
$568,765
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/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
4.87
+0.45 +10.11%
Volume: 8.25M
June 3, 2020 5:36p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€2.08 billion
Rev. per Employee
€328,953
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/zigman2/quotes/209433148/composite
US : U.S.: OTC
$ 4.89
+0.09 +1.88%
Volume: 7,593
June 2, 2020 10:18a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.99 billion
Rev. per Employee
$388,083
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