Southwest to Share Boeing Agreement Proceeds With Employees

By Dave Sebastian

Southwest Airlines Co. said it would share with its employees proceeds from its agreement with Boeing Co. to compensate Southwest for a part of projected financial damages related to the grounding of the Boeing 737 MAX aircraft.

The airline on Thursday said the move would reduce 2019 operating income by about $125 million.

Southwest said it would provide profit-sharing details early next year, including how much each Southwest employee would receive.

The company is in continuing discussions with Boeing regarding the compensation for damages, Southwest said.

The MAX has been grounded since March of this year after an Ethiopian Airlines flight crashed, less than five months after a Lion Air flight went down in Indonesia. The two crashes claimed 346 lives.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

December 12, 2019 07:55 ET (12:55 GMT)

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