Alaska Air Group, parent company of Alaska Airlines and regional subsidiary Horizon Air, is joining two other airlines in granting employees a $1,000 bonus at the end of the month because of the corporate tax windfall from legislation signed by President Donald Trump.
Employees of Alaska Air Group, the parent company of Alaska Airlines and regional subsidiary Horizon Air, will receive a $1,000 bonus this month, a move it attributes to the corporate tax overhaul signed in December by President Donald Trump.
The company announced the bonus to its more than 20,000 employees Thursday evening.
“Over the last couple of weeks, we’ve been assessing the significance of the new tax law,” said Alaska spokeswoman Bobbie Egan. “We are sharing this unexpected benefit with our employees.”
The move follows the granting of similar $1,000 bonuses to employees of American Airlines and Southwest Airlines this month as a result of the corporate tax windfall.
Alaska employees on the payroll as of Dec. 31, including those at baggage handling subsidiary McGee Air Services, will receive the bonus on Jan. 31. Top executives are excluded.
The payout will be in addition to Alaska’s annual Performance Based Pay bonus, which hinges on the company meeting or exceeding specific goals for safety, customer satisfaction, cost control and profit.
For the past eight years, that annual bonus has equaled an extra month’s pay. However, it may be lower this year because Alaska suffered various operational setbacks in 2017.
The company struggled to integrate San Francisco-based carrier Virgin America, acquired in late 2016. In addition, Horizon suffered hundreds of flight cancellations due to a severe pilot shortage.
The performance bonus will be paid on Jan. 26.