Southwest Airlines Reports a Profit Courtesy of U.S. Taxpayers
Photo Credit: Southwest Airlines reported a modest first-quarter 2021 profit — thanks to federal help. Flickr / Midland Airport/Flickr
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Finally, a U.S. airline sees black ink, but only thanks to Uncle Sam. Without federal payroll support, Southwest Airlines would have matched its peers and reported a quarterly loss.
Southwest Airlines turned a profit in the first quarter, thanks to Uncle Sam. Without help from the federal government’s payroll support program, which essentially picked up Southwest’s labor bill, the carrier would have reported a $1 billion quarterly loss. But with assistance from the federal government, the airline had a modest $116 million profit — and kept its 50-year streak without layoffs or furloughs.
The carrier is in talks with the federal government for an additional $1.9 billion in payroll support provided to the airline industry in last month’s economic stimulus bill. The extended program now runs through Sept. 30 and mandates that airlines taking the aid can’t lay off or involuntarily furlough any employees. Since the CARES Act last year, Congress has funneled more than $70 billion in aid to the country’s airlines.
That won’t be a problem for Southwest. Last year, 11,000 of the airline’s workers took voluntary extended leaves of absence. And with sum
