Southwest Airlines will split $125 million Boeing 737 MAX settlement among employees

Southwest plans to share proceeds from Boeing 737 Max agreement with employees.

 

Southwest Airlines has announced it plans to share with its employees the settlement it reached with Boeing over lost revenue from the grounding of the 737 MAX planes.

 

The figure is reportedly $125 million.

 

Due to the worldwide grounding of the 737 MAX, Southwest was forced to cancel around 175 weekday flights.

 

The carrier also had to spend more on fuel from flying less fuel efficient replacement planes.

 

“Our people have done an incredible job managing through the Max groundings, while providing the highest levels of customer service and one of the best operational performances in our history,” said Southwest CEO Gary Kelly.

 

“On behalf of the Southwest board of directors, we are grateful to our employees for their extraordinary efforts throughout the year and are pleased to share proceeds from our recent agreement with Boeing.”

 

Despite the settlement, the Southwest Airlines Pilots Association has indicated it will proceed to sue Boeing for more than $100 million.

 

“SWAPA appreciates that Boeing has finally acknowledged the importance of compensating Southwest employees for the incredible financial damages they have incurred as a result of the grounding of the 737 MAX,” the pilots group said.

 

“However, this agreement doesn’t get anywhere close to compensating the very real and significant losses SWAPA pilots and other employees have experienced — and continue to experience — as a result of Boeing’s negligence and fraud.”