Tax reform spurs American Airlines to give $1,000 employee bonuses

|About: American Airlines Group (AAL)|By:, SA News Editor

American Airlines Group (NASDAQ:AAL) is the latest to start cutting $1,000 employee checks and crediting the move to successful tax reform.

CEO Doug Parker and President Robert Isom announced the move (for employees at mainline and wholly owned regional carriers, excluding those at officer level) in a letter to staff.

"While the company does not yet pay cash taxes due to our enormous losses in the past, there is no doubt that our country’s new tax structure will have positive long-term benefits for American," they write.

The distribution will total about $130M and arrive this quarter.

Shares in AAL rose 1.8% today.

Earlier, Southwest Airlines said it would give employees $1,000 bonuses due to the new tax law.

Subscribe for full text news in your inbox