More airline bonuses are taking off due to corporate tax reduction

Source: MGN Online

NEW YORK, (AP) - Alaska Airlines and JetBlue Airways are the latest airlines to pay bonuses to employees after passage of a new tax law that figures to help the carriers.

Alaska and JetBlue, the fifth- and sixth-biggest U.S. airlines by passenger traffic, say they will give employees $1,000 each, matching bonuses announced by American and Southwest.

On social media, CEO Brad Tilden says the new law will let Alaska make investments to become bigger and stronger.

The law reduces the corporate income tax rate to 21 percent from 35 percent. While American, Delta and United still use past losses to avoid paying cash income taxes, JetBlue pays cash taxes, a spokesman said Friday. Alaska did not immediately respond.

The law also lets companies immediately deduct capital expenses such as new aircraft.



 
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