Southwest Airlines (LUV) posted a lower 2nd quarter result compared to last year as fuel prices continue to weigh on the airline. Southwest Airlines has scaled back expansion plans due to tougher markets and higher fuel costs. The airline reported a second-quarter net profit of $278 million, down from last year’s $333 million dollar profit.
Along similar lines, the airline is trying to cut labor costs at the airline. Southwest is one of the only airlines to never lay off an employee instead the airline is offering buyout packages to 8,700 employees in hopes of enticing some early departures. Southwest employees have become some of the highest paid employees in the industry.
Southwest spokeswoman Beth Harbin said the package includes $25,000, continued payment of health insurance and other benefits for some time and flight privileges.
Flight attendants, individuals in customer services, provisioning, operations, freight and reservations, and on the airport ramp who are some of the higher paid employees received the offer.
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