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

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

Add to watchlist LUV

Southwest Airlines Co.

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

/zigman2/quotes/200327741/composite

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Delta Air Lines Inc.

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

/zigman2/quotes/205782179/composite

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Spirit Airlines Inc.

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

/zigman2/quotes/209207041/composite

Add to watchlist AAL

American Airlines Group Inc.

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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Qantas Airways Ltd.

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

/zigman2/quotes/205396176/delayed

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Air France-KLM

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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Air France-KLM

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