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Fortunately for CEO Gary Kelly, the packages are being well-received by pilots and the flexibility to return when things pick up is also hitting the right notes.

Southwest Airlines Co on Monday extended buyout packages and temporary paid leaves to employees in what its CEO said was an effort to “ensure survival” as the carrier braces for a slow recovery from the coronavirus pandemic, according to documents detailing the packages that were seen by Reuters.

Southwest, which has not imposed any layoffs or furloughs in its 49-year history, said its flying capacity would probably be down about 30 percent in the fall.

“While overstaffing isn’t tied 100 percent to capacity levels, it would be fair to assume that we are overstaffed in many areas by a similar percentage,” Southwest said in the documents.

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Southwest is offering leaves of a minimum of six months with benefits and 50 percent pay for most employees, excluding pilots, who would receive about 61 percent pay. The maximum leave period varies, and the airline said it “may return employees to work earlier if needed for operational needs.”

Buyouts are being offered to employees depending on their time with the company. Employees with more than 10 years experience would receive a year’s pay, health benefits and four years of flight privileges. Pilots would receive about two-thirds of their average salary for five years, or until they reach age 65.

“These programs are critical components to voluntarily reduce our workforce so that we can preserve the long-term viability of our company,” Southwest CEO Gary Kelly said in one document.

Southwest is among U.S. airlines that have received billions of dollars in government payroll aid which bans any forced job cuts before October.

Jon Weaks, who heads the Southwest Airlines Pilots Association, said the packages had been well-received by pilots and noted the temporary leaves give the company flexibility to call employees back to work if demand picks up.

Weaks has said he believes that most of Southwest’s staffing reductions could be achieved through voluntary measures.

Southwest called the packages the most generous in its history and as “appealing as it could afford.”

The deadline to apply is July 15.

(Reporting by Tracy Rucinski and David Shepardson; Editing by Leslie Adler)

This article was written by David Shepardson and Tracy Rucinski from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to

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Tags: cares act, coronavirus, gary kelly, southwest airlines

Photo Credit: Most of Southwest's staffing reductions could be achieved through voluntary measures, its pilots association believes. Miguel Angel Sanz / Unsplash

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