American Airlines followed competitor Southwest Airlines on Tuesday in announcing $1,000 bonuses to its employees thanks to the Republican tax overhaul.
In a letter to employees, CEO Doug Parker and President Robert Isom said the company will "distribute $1,000 to each team member (excluding Officers) at our mainline and wholly owned regional carriers."
The bonuses will total approximately $130 million and will be made in the first quarter of 2018, they added.
The letter, made public in a press release, repeatedly mentioned tax reform as the impetus for the decision and hinted at further investment in other areas such as aircraft and facilities.
"Recent tax reform has received much publicity. 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 America," they wrote. "We will be able to invest even more in aircraft and facilities, and we will be able to do so with even greater confidence about the future. As we analyze those potential future benefits, our leadership team, backed by our Board of Directors, considered how a portion of that positive impact might be directly shared with the very people who produce the profits at American — all of you."
Southwest also announced Tuesday that it would award its employees with $1,000 bonuses in response to the GOP’s tax bill.
The two major airlines are the latest businesses to announce bonuses and pay hikes after the the Republican-led Congress passed its bill reforming the tax code last month, and President Trump signed it into law just before Christmas.