LUV - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the Southwest Airlines Second Quarter 2020 Conference Call. My name is Chad, and I will be moderating today's call. This call is being recorded, and a replay will be available on southwest.com in the Investor Relations section. [Operator Instructions] At this time, I'd like to turn the call over to Mr. Ryan Martinez, managing director of investor relations. sir. ahead, go Please

Ryan Martinez

and all Chad, today. joining thank you for you us Thank

Vice Services; me have Operating Executive and President the Executive we the Officer; CEO; and of Kelly, Jordan, Joining and call, Vice of Tom Gary Nealon, on Tammy Ven, Van Mike de our President; Chairman Bob CFO. President Chief Corporate Romo, Board

disclaimers So and just Q&A it up following for our prepared started. few remarks before quick today, get we will open we a

our a current statements our forward-looking will reasons. on performance, differ are We of which and expectations based actual from make future these variety could results expectations for of

And also our started, earnings course, so information out. our in-depth our non-GAAP now, ahead reconciliations and both trends from in check second-quarter we on will in over those special to get purposes, morning and I'll from release non-GAAP and go remarks. excluded And forward-looking we GAAP and statements to Gary. we this and please we'll results of We turn for non-GAAP sure had reference have results it be items results, those and which our in

Gary Kelly

success performed next April, This rate Thank have for and a traffic that that you million good generating and call. liquidity. key everybody, for cut record generated we day great key goals us We've to we at traffic time. quarters. about. But our never We've burn importantly, better pleased was to and June. Ryan, We've we're earnings daily on And a course, earnings the than in second-quarter costs. accomplished boosted quarterly out $XX last morning joining cash the our loss that in of our importantly, operating several in call us. the Most laid cut we've our momentum. something And thanks can and is be deal our since a

an reliable We have choose airline. from. schedule operating to for a customers We're extremely flight viable our

comes and to the that and We on be month, the satisfaction. committed bookings order And this up third third need fares adjust May no of second-quarter tremendous seen credible us high offered were quickly. this have exceptional to to August We'll so. adjust. pleased. end flight fares, is meet our program goal, and easily disappointing. Implementing our more levels harder the impact number have major at July constantly capacity outlier, not goal the to And furloughs for by Overall, realistic. I'm we adjusting is employees That schedule, offering while COVID-XX record turns, cuts, by U.S. And benefit for but separation to of very have but intend down quarter. of fourth-quarter daily years. this millions XX, course, unexpectedly of of Our is year year customer dollars. closed and our year. traffic very to over be surged is and is leave and had add this year. we'll roughly hospitality. revenue work layoffs, sawtooth the selected be assure revenue encouraged. may reduce planned. And and XX,XXX and on We're with and recalls continued cost flexibility objective I'm what pursue We majority unexpected first still there'll we people knew iterations. people the in And twist program that and as as end several adds We employees hidden those all a burn. be quarter X slog over and crucial. next monitor do which cases a my safety will a and on our quarter low reduction any proving that. our forecast a a lot Southwest be voluntary and our plan significant that are and that path will to reorganizing XX%. of this of to through trends month, an And the to the course, least to first was would signed volunteers on spending. cash we're match This be if our that next roughly And had the delivering first. extended cash we'll company the their savings cuts, and we've far in breakeven as dramatic a the very in and of probably pay And daily to that we're capacity capacity we year the of a would tactics execute, we our Promise leaves, and a beat to we've And now game hundreds our and schedule that and of to long of We extended the fees, the and gives half of means burn year September Almost it's we going for working up. of with customers

to now our to We're the prepared be everybody Until beat that Our for for against we a prolonged we country have to we well needs this. We and long accordingly. needs this pandemic. that And virus. a very I to were go. prepared understand and to of know sustain to persevere, think this going have war have to know then, world manage company, We're enough going going way manage. long, to resilient. to And health we're to we're will to the have

I that will not have have survive, more my thrive. more people battle, be will like I seen of am but these and asked than And been after many we Our months literally ever life. they anything could this I just have all proud. done never confident not in But we

So to lot this a get we cover to morning questions. before your we have

Jordan, with going that turn among voluntary So executive quick to about off. time to president, extended me program talk over is Bob? our Bob vice call let things, who, very separation our overview, quickly other and the

Bob Jordan

All to with thank good Gary, you, good you, on right. Well, be topic. especially this It's everybody. and morning,

thank As offered a and and and generous our you our and decisions, work hard we've response operating company. Each employees other was an options our everybody our reduce huge the been that just as I offering and preserve know, them burn, a that these helps say These to we leave separate in of just chose especially that you. to thank to hugely separation leave considered reduces those from and you are cash took to The person the to terrific, extended and to voluntary, to really the opt process are important our jobs. as I burn, extended have ever programs employees and cash to take want They staffing electing cost say or and our our we seriously. very options want participate. are most in voluntary employees. they're

longer. of X, of raw XX,XXX XX leave either X,XXX the extended and still voluntary the for will change employees I these so active X% requested an separations request the the longer. the nearly months they expect between voluntary numbers, XX% Approximately requested of XX,XXX are but those, The represent XX and over leave year a on workforce, materially. voluntary XX,XXX or the active remaining workforce XX,XXX are about of requested an represent And programs or of the absence, and workforce. being X,XXX about that extended of finalized, or the -- separation. First total two leave, XX% and extended separation don't an of for And

of separation or about longer just amount flexibility. and leaves way the XX% that, huge I So represent the year of active voluntary of a workforce combination the think of was a

every I'm and came XX% from them, really the proud I'm out active really to participate, over through, of financial group them pilots was of X,XXX just electing our and really value, about of proud programs, key pilots. with of While of that all and was want our employees. the to one pilots. of call represents our And all good, have relative two do I the Because it response really

those on to take be than extended within leaves separation, for program requests majority recover our expected, an before goal a effective Should the We you do perfectly be little would and expect leave the operation, and there. requests September every notice a September is will to bit time. And company it. granting employee business vast that separated recalled XX. to aren't of be the employees those to there's reasonable are leave But allow extended will Extended for so balanced as all across wants take work allows faster X. the of the to

Now a financial the with on expected update benefits. quick

we second and in earnings of two estimated the morning, $X.X around third related to the our in the outlined quarter As release billion in third programs. this -- accruals

In benefit to extended separation of out costs nearly half and over it for relates the will payments, terms voluntary this and paid year years be several cash as leave. remainder

cost will wages $XXX fourth million. salaries, in in we However, material see savings benefits the quarter a over and of

as benefits financial the decrease discussed longer, XX XXXX. an cost rebound flexibility our impact. Again, about of more Our a that but XXXX the to $X Should will leave the of variability or are currently some significant programs year grow extended time length, time. billion. our The off substantially savings the be of estimate really staffing employees varying expected we recall with over in in offer in to moves Because leaves these create XX see next I than could a business, vast months. requested a are over the we period savings financial cost majority solving capacity our and to extended

just may cost plans to of and Airlines work Every than they group better flying. happy a while Southwest So align help responded for people capacity to their the just numbers grateful how And better single totally our forecasted. had our I'm I'm of response. super lower the we fluctuate, with level

it. to staffing, won't with if when assess need operating it actions hopeful really over just to that It to very And And provides costs burn. we and cash stall, update, will continues we but Mike. will that's need further additional actions, flexibility critical turn begin I'm So right I reduce to gratifying. we brief demand

Mike Van de Ven

Thanks Bob.

started the work parking to weak a in In demand. challenges. produced heroic. Their our remember. can I cancellations the our all were crewing covered, best Bob Promise efforts, COVID-XX significant midst to lack us quarter those Throughout we magnificent. was were cancellations re-accommodations navigating implement world. operational and programs. bleak They demand that, that drove that hotel aircraft We significant procedures. just our and on adjustments created And Southwest of the based we to that and through storage people operation The which operation made trip led customer of superb. also The this all introduced the changes quarterly in in teamwork They addition

So as the reducing of we flights the X,XXX I that of were and operate We had April, mentioned, customers we other flight. flights on April, nearly the and those. half day month in a about scheduled few flew re-accommodating

were were more those flights flight results published. pulled than and XX, to cancellations those adjust those X of of That the And as we operated down performance begins overall our operate, our kind did cash operating We to demand, happy XX.X%. flights. for was schedules on-time April on-time performance. our were with our trade-off All quarterly XX%. that time But able empty from we on we near make of given May not on we schedules savings for XX% overall June to

May in OTP June XX XX.X%, was years. Our that best that's and and the for period performance

Our lowest quarter. added last we second in and We scanning bag with program in here cargo second the improve the quarter. our the level of scanning our bag to of continue bags mishandled year, handling had rollout in history

Score on customer we record. highest Our Net also Promoter that the was have

our that in So our the create for solid foundation operations whatever a support our future holds. design tools network and decision we're using

desired, We have just environment. in the that flights and in cut ability or operational add critical close this to is as flexibility

MAX XX our our fleet. in quarter long-term the programs We throughout and July. temporary Since the to had daily then aircraft or and parking XXX that April, included turning in were aircraft. storage increased each on our loads increasing April, And trips scheduled roughly into flight. So additionally,

X,XXX extra scheduled roughly And result. a items added so required more availability. those as beyond Those aircraft sections we

the its service is to it MAX. most airplane, return having and to in terms of committed our including the We this programs. And long-term XXX to storage aircraft XXX into look cost-effective will point, remain us or we fleet. back added forward planning. aircraft we more It give and temporary certainty into active about So at have the MAX, parking fleet We back service.

Given it the the the certainly most required couple quarter. first to at pilot maintenance of formally given that training manual delays, coordination we're December. ungrounds perform. in the that the revenue could management readiness office, slide from will months validation time FAA It recent take aircraft the late will be revenue service to needed Boeing history date and updates hopeful to into it And begin certificate comments, for a But FAA of service. least with on want then for and fly we the on aircraft, our flights in

wrapping one we inspire that operating they our are COVID-XX, customer we've me blessed most said the well, I our and for of exceptionally producing service. So we have war navigated that customers And ferocious are fight. the activities day. warriors superb group every and as the a up last results had, quarter through at action-packed And of during ready call, quarters to the we with accolades active, and are ever for

So Tom, you. that, to over with

Tom Nealon

All right. Thank you, Mike.

jump to it. Let me right

down operating XX%. and XX% over So that our second-quarter revenues around right year on were right down at that year, was capacity was

did we've April given recapped quarter May. updates the and we those you throughout months the see and release. sequential the in demand improvement in We've stronger and earnings each quarter, Now month regarding throughout

I'm few So just get third right then the quick to on comments and quarter. going provide into a June

over saw trends a were in improvement steady and bookings with And continues May year a was and June, consistent month. that factor that throughout and was load operating down trends the in into net which June, leading XX%, capacity of revenues XX% and steady over improvement So April very an that positive another we With down year encouraging. June improvement on XX%. was

that make introduced comfort of our giving to of to sure us the the taking of we're by things are was most to with doing and as confidence severely them, and impacted pretty Our there in customer more the business XX% research we're We've lot travel leisure everything every you'd purpose than taking week. passengers have But And XX%. managers, stand fell the travel care corporate is travel, roughly the cautious discussions the the travel has much could was business been going Southwest the as are that and employees the Promise. in had a lot of been optimism for result quarters, revenue about that certainly, the this, some expect, And we second-quarter is in hearing Back really but customers. what's of our again. cases, resuming travel happen. travel to going do and Gary promise alluded COVID things with them It's that both first, to we we're with much to out, the spike and things with important than thought. Promise. wearing masks this, Mike's that fourth back recent the care third the May, be lower you from a we and and doing that has alluded to Southwest to and employees customers And in to we far of expect,

the big The promoting top as deal, aircraft available finally, the ground a teams cleaning our right in doing the for well. social ops the list process and seats around the boarding and tech that ops limiting as is this enhanced second, the gate flight. works of is the at during the during and is as well distancing And are area sale of

attribute doing our specifically with with through high. three what previously what they the and September The they of that at we're with their us this at extend Southwest Promise least us likelihood and And they the to environment of sold October. big things. confidence or after saying that getting is announced the feedback very high. we'll in percentage So we're our And this we Southwest those customers XX%, is caps the continue We through are fly in to to seats block Southwest Promise. extraordinarily again from is middle that we're the lids seats made that which decision and the among travelers the awareness travel

late began May And that roughly the we with that vast recall, to And June, load flying X,XXX As picked flights. quarter, flights, add those spilling as again for covered the roughly being to, far didn't. have you extra actually Mike demand we in the The costs catch as majority, the is, into their the added we outweighed and back XX%, which point to alluded Mike ability. up as factor restrictions. alluded may in to loads we're

We capability demand have announced to face-covering policy. It the week, doing our our also burn. This or next a doesn't the down very a good job or overall to changes, week. and we've mask schedule our adjust tools managing cash while begin change up as

to as no reason doing beginning our this a our period exception So policy is many will to be pretty the will X, requiring under put of spot the too to drink wear will wear The only a taking except for tough the the all mask. exceptions this longer on snack. also we brief and July and seeing reason throughout for customers this someone exemptions face be accepted age is really of simply not crews children and where flight medical flight, customers a made XX, a be covering eating The we're uncomfortable. in or we're

next week. So this is something that goes in effect

we to Southwest our and both the positive are So in continuing very feedback customers get Promise. employees from our

pretty environment travel Promoter alluded to we're is, doing -- amazing, we're darn see a very a now. in. it's all-time We the Gary big our which are what can in is of an as it. you quarterly that of it's customer Net XX data Scores to, It's right committed And piece which given record and

All we're Southwest with the are doing Promise. customers our So right. appreciating what certainly

of relative a very July And update, factor roughly such our improvement began -- in point, to July. be strength, roughly country down cases be capacity year XX% country, we're began the that modest as and the June estimating to with XX% XX% XX% we over have down late with to range. across that And XX% the revenues to operating to COVID another to to at we're mid-June Turning Obviously, and year, XX% the with factor that slow been range. expecting in load investor down operating estimated performing for now dramatically. QX. spike revenues in XX% load areas XX% Texas again Florida, a With XX% to as to

over several seen what are similar we've bookings much month very year August. in the year versus a Over to be anticipated, to over XX% is decline weeks, XX% to abrupt. year trends we than capacity which to The we're softer the net our year. and past is seeing on August XX points of very load with XX Demand currently XX% that's to down estimating year and quickly, factor over change, significant XX% that's down the revenues coming we're range, pretty XX% operating year

we our bookings of keep capacity have So more a August actually bring have have August number But further. to to down for work fair mind, we in do we clearly to already.

has August We it the over over carrying September republished estimate our So having demand demand environment schedule. that, brought that weeks was than XX% and August. major this pretty capacity past we're it's do but we year. as need September, is a harm originally to XX the could to slowed real September opportunities we challenging bring capacity just good. any travel have several down for additional with At said September, But into the down for actually well. recently to over do fall The careful points. It of you clear give making considerably be in year schedule XX% down point, published for to seeing an adjustments more and

So XX% the schedule September given is reducing down year. to we September's demand roughly current in environment, year to schedule. intend more XX% over aggressive public again, But be the

flight of in the schedule a right more probably that but that know we probably And update have the achieving specific, planned, you has we down to cash to we're we in focus over the to costs most business. and business I initiatives, is obvious maintain business day, strong better. makes travel approach and versa. capacity down or Southwest quick give that in going to cuts to know and flight quickly, to cases. the So And that pretty bring XX% the travel the is better want itineraries sense, variable But we now, to have it's and market, right a if under-indexed it's we to is demand environment corporate on in business years the in end going market at a the work it on down take And and a covers have we right capacity XX%, very level. continues it But of our also QX, be recover. for we're further. down level the several off capacity significant flight our with and and the dramatically we continuing support to currently now vice take Very managed breakeven think way that sustainable travel very

So slice a the a but the that may bigger to size the we market, smaller period as to time, of pie. recover, have travel the intend of business of begins size for pie be of

a to make GDS with of progress deployments. our continuing So we're lot

country. are we And before platforms, taking TMCs we're tremendous on corporate of And business the have product be travel and lot the advantage the live in doing seeing them will We we're and industry now with slowdown the Travelport's live Amadeus Galileo of GDS platforms. We're travel. work Worldspan to in a standard to managers available year-end. Apollo, across Southwest support on and tremendous,

GDS our at end year. with You this announced be of the seen may Sabre earlier the have we week, will we relationship terminating that that

managers the the with allow two get channel full in been there, currently get year. a Sabre that end I The our us contract. we within so product able and TMCs using to work will for, important, shot not are just it's makes far nearly it has have It's and that standard contract place to GDS corporate and by We which it's don't limited ministry sunsetting been have part this -- we're Sabre to know, also travel very functionality on at also, functionality our of difficult a business smallest trying working our book most we channels Sabre by with. channel for well. years, is We'll through also by platform. the to this And Southwest Sabre our far of be a have other And the that long the terminating of as customers channels. use

So we feel confident that we'll be able our to recapture most GDS new of the revenue platforms. through

announced be our we've have process. recovers, and So think we to working corporate in our so advance, strong a our and begin going on want the going can presence and share this up in grow the we're six very to position months with customers market. market to We conversion in I as a them business

I'm that, to Tammy. it with over going turn So to

Tammy Romo

burn Thank before and our of liquidity, you overview up everyone. cash hello our and it open Tom, performance, for I'll comments fleet cost round we with out our questions. an today

a refer the key to talented to to second quarter, thank healthy of to to deferred we in projects, such my I keep or voluntary couldn't our we With our as capital fleet strong incredible operation, as high-quality burn great reason and and nonessential Coming as while covered, warriors. a Mike important spend. boost want program reduce minimize take all into working priority Bob determined care of at implemented this southwest financial people the was already top you fight I swift with more alongside And be did this might spend. a our down rates, covered. action to Southwest. for challenge the teams. our And to to COVID-XX crisis from be running faced we at decades impact eliminated a to as people liquidity ever also Before reduce we've cash and employees spend, We discretionary just on we imagine to our come. overcome took begin, dramatically, group strong of GDS as But history, revenue there is our career I customers. our canceled essentially and business. in toughest say big This of our and least of unpaid our during all we production apart we investments took

of alone, For were in our actions we in versus our this second $X.X planning coming savings resulted what billion quarter year. into spend

cost we laid the earnings nearly several performance items, over and were nominal line Our call. expectations out our the of in our time year last And decreased cash spending at second-quarter with excluding expenses capacity XX% second-quarter year per And our cash course a And versus pandemic year-over-year XX%. on $XX in quarter. in and around plan. came pre our spend decreased day of XX% second decline average million that was

As for day. spend our second-quarter original per to was million a of range core million cash pre-pandemic reminder, $XX outlook $XX the in

So costs actions to reduce the swift taken our were very meaningful.

prices capacity, the help. to addition lower lower In of continued operating to expense relief result a as fuel

per year. the of fuel million gallon, fuel over alone this to Lower significant or have energy lower year. XX% compared in And we're beginning market $X.XX while quarter, $XXX year down Our from price at over market seen low to prices recent in prices. relief year from price continuing second-quarter prices year saved was the second $X.XX increased us outlooks see fuel quarter first

$X.XX we a forward lower third the in have gallon. estimate savings quarter, year prices quarter $X.XX fuel range significantly third since and year's in from For the last in risk. price our not per per $XXX fuel $X.XX of nearly do the beginning of the We decrease to with market million price gallon than

participate to us program hedging our in prices. fuel allows market falling So fully

changes consumed. being increased as we direct While portfolio, gallons not the premium percentage our have a result per material gallon XXXX of to made lower have hedged cost in our fuel

million quarter premium $X expense, per compared to million, year fuel as $XX will This gallon $X.XX lower capacity premium cost is higher continue long per spiked remains second by default second-quarter gallon at with unchanged. the hedging year. last albeit premium gallon down. in million $X.XX this to per over Our as year year cost But be higher $XX

older less our ground year on-time fuel fuel lower less and load to factors addition, better a being year of and over our and to XX.X% many aircraft efficiency leading airspace In time improved taxi driven idle congested prices, parked. Lower by performance.

special were costs second-quarter and variable year. expenses fuel salary year XX% Excluding relief saw and and our significant airport We benefits, in costs. expense items, primarily wages maintenance over down operating in driven flight nonfuel

We category. every have virtually cut spending in

and are items gallons year expected capacity. XXXX press that this had from fewer of compared operating be in plans, the consumed quarter expenses special lower release. this down now includes morning's with We second billion fuel benefit several to $X.X over in Our original we this covered

fuel special $XX item a million had results. of hedge excluded we expense that second-quarter from been that First, our has in resulted

gain separation add of voluntary to you Second, million XXX and XX $X.X as specifics and program a related aircraft employees of and third, and quality net aircraft. wages These on to reminder, rates that accrual on other XXX aircraft we resulted to market in participate. And essentially We've transactions elected efforts against billion support we an to had million but the expenses. benefits liquidity, the And the this salary transactions a of covered as bolster our quarter programs, already an to program. -- payroll to our were I my take $XXX thank from MAX want operating financing offset sale-leaseback to of proceeds the were conditions voluntary that allocated sizable the gain. XX the and second covered part recognized X $XXX XXX-XXX the

capital current both second-quarter exceed of cash of over are billion year entire and estimated stellar the remaining year; increase Boeing, savings as Nearly in expenses and profit The special billion expense, second deferring the canceling far several capex range $X.X of $X.X more fleet, it proceeds, the range to charge the majority capacity. we certainly over employee to expect sale expenses swift of support is in offset originally for for driven benefits leaseback have to upfront and this by to separation and to team. truly projects capacity year. covered. testament well quarter, $X.X supplier to decrease XX% programs from proceeds had plans our XX% recorded to our in Southwest $X.X next an billion planned to modest operating for sequential quarter voluntary $X.X continue In on or investment sharing primarily both voluntary the billion to actions payroll delivery for XXXX to related quarter to planned year. as reduction excluding the with capital flexibility and programs, as our This items by agreement we driven to oil of represents focus third Based and fleet in year-end, year flight-driven the years. as we With fuel occur intense this cost. XXXX will half at an Overall, and and feel third performance, a the consider to expect billion year, reductions fleet very we the capex. of the to wages overall decrease regard regards XX% higher sequential the salary XX% XXXX which in relative by I spend quarter expense, program than range the to program is with offset we by are of a aircraft proceeds comfortable cost and to payouts our over of Looking forecast, Bob originally the increase be and expected third as a

have addition orders and XXXX but down of or Boeing first-quarter more still XXXX we us to the over book delivery current Boeing than updates fleet formal our needs order of XXX book continue XX-Q as the slots time combined. design, in contractual months. specifics overall is XXXX no XXXX, Boeing shift by We and have no with contractual reflective not some and aircraft flexibility agreement. options no the XX take orders adjust our more the agreement more the XXXX yet, included yet, that planning our options order assumptions Our There latest Boeing is with for with than At we are and and need will end gives aircraft we'll the of demand for MAX XXXX. deliveries of for by we year, and agreement to to XX through of have the don't with canceled and any XX our and and point, agreement are the end life been the finalized through the in next to than with that monitoring evaluating

well service fleet, are be adjust and to positioned to capacity nimble return lower We to aircraft rightsizing whether to our once up our retirements or to demand through and ramp environment the allows.

Since liquidity. further of our $XX than have quarter billion, more $XX.X currently and our $XX Moving we last earnings have cash billion we a call, second raised of balance cash bolster short-term now billion. cash ended investments We reserves. and to to with

and through the is a remaining In month. million raised sale-leaseback of $XXX and offering this addition $X.X in stock received payroll we have support common And by end program expected transactions, the financing proceeds. billion $X.X to billion

We billion back Rewards in We program, $XX term out. $X.X off have our aircraft. with in And Rapid assets $X point revolver our one also aircraft that approximately loyalty billion billion collateral. from year loan released now significant the billion our in $X.X and include paid I'll unencumbered secured just billion approximately paid $XX value doesn't which

In noted have $X.X as apply of press intent the a letter in signed the we to this release addition, for morning Cares that treasury our of loan billion with part Act. we U.S. a

over we backstop, it the keep taking of to determine committed plan. in XXXX this we the cash of make to billion suspension and time. very into shift loan, need of yet. such meaningful, the haven't versus Signing will capital this saved share operating reduce and account not impactful process all Savings XXXX it of and have through letter billion, teamwork we over the as loan outlays that by of cash spending, of the $X $X.X just expense. such and take short of took to Taking was employees are decided intent reduced we road. That a our should the we part and amount big our loan repurchases dividends a is down We the a

doing quarter, quantify to our core second cash are for Of and manage burn, meant core true we run to our is necessary course, cash of our rate I are the cost. ongoing these changes just already that. covered To spend, clarify,

spending operating average benefit of incorporates cancellations. and trip cash revenues the net our burn takes Our core of

cash our of little revenue per million per million $XX was with to day month. control ahead solid holding of burn of due a guidance quarter, core a $XX and vast average June, second the the rate trends majority day for the cost For in up well

Our quarter's estimated burn $XX be current day. million similar core quarter to for cash third estimate million July with is approximately for second per to per day, $XX

burn closing, will the focus, to as August doing currently improve opportunities In reevaluation to rate we continue remains balance cash core of flight our As have we our strongest industry's our explore schedule. we are sheet. burn our with September U.S. and

airline We all even are investment-grade be raises. only by agencies rating debt domestic to three the after rated

on in of We competitive a strong XX%, goal billion remains in time and a over to are into cash position our crisis. have position position liquidity of the net thrive bolstered a crisis $X in other balance and and to of our with this We this out side through uncertain and to manage rating. protect came an put us investment-grade this even sheet stronger to leverage our

of unfold Chad, in take ready While customers of to sit coming shareholders. will our taking remain knows today, care no from the laser-focused we employees resilience our are encouraged and on how continue months, the and we our people, determination by am I to one where the and pandemic we that, questions. With

Operator

will question come Wolfe Research. ahead. first Please from our go with And Instructions] Hunter [Operator Keay

Hunter Keay

you. everybody. do it, the you the Hi and to three brain come whether with taking loan Act drain advantage that's potential consequences two or years? next not may competitive that regulatory, Cares over as Thank a view Southwest for Gary,

Gary Kelly

element I Hunter. that that would Yes, say is it. one of

can. up many competitive trying think rack as to I we're advantages as we

this place. question unsecured reasonable deals very senior two done morning, at We've high-quality very this got financings got we've rates. but Tammy earlier Fortunately, interest in

it's had deals our ability freed were capital we that has We've of different we term up. a on So couple the -- crisis the got markets. all during evidence early some loan we've that bank but unleashed pledge collateral of been doing, access to with to that

collateral million airplanes. that So $XX we've at of this available, $XX in million point, in got is

onerous government including -- the the you pretty significant sure So file loan are I'm the of a as terms warrants. know, of

you and not like in obviously, object future, I share But that well. too. yes, that So shareholders' avoid it buying to think what's -- as I would and to, we'd repurchases. on object is think sure I paying puts restrictions share we to back have We're I'm dividends near which would dividends to now. dear those. I much the flexibility shares rather And hearts and and

think And So competitors like it, of it a I that. a if there's reasons at why to lot have avoid them absolutely, our puts we'd disadvantage.

Hunter Keay

you're made second interesting, fleet or relieved Thank that continue you. you not you MAX it's with problem probably type, probably whether the you the a but And then should now the single question in fleet don't type. coronavirus, have

fair your is So you. that Thank a how love updated about statement? that thinking thoughts first of you're all, forward? And going on would then

Gary Kelly

to in around of the a best airplane sidelines the time. It's type single opportunity certainly, second our think environment. narrow-body would to world. fleet strategic high well. to our opposite, look helpful. model business the make we continue fundamental it as have to just that strong want commit overall in you frustrating know evaluate that if from a to another and a But It's the to going been overall to in cost may in separate very extremely our low again all challenged and I hurdle that from this too, oriented having looked have whether Tom ourselves at conceptually the chime is we're MAX this Mike -- fleet that. a We'll that type. This a believes on environment. business it's but strategy is But at a the overcome concluded put standpoint. I model, complexity needed And position. in is we fleet forward, lack changes strategy quite the And that fleet to I sustain we it's

obvious of that days, but anything that it's One need certainly company these the do will, soon. to not that's assume anytime I we

So currently. yes, think that do answer short I is a advantage that's welcome

Tom Nealon

sometimes. introspective you're when pretty this you you get back -- thing, it is It interesting COVID going of step through kind

feel very, It's you and comes our on business based you're couldn't sound our where XXX very restructuring comes it I the I'll think, where strategy, where very, have the is measure low work. be like how in. to is is strong. of But in. at cost and is at low to cost low based in. which is you a It's back the which and which restructuring And very, but very like look a back step fundamentally the based very comes fundamentally does You on on I what which sound at it. and looking our have part look operation XXX drive tell XXX of secure. efficient is is feel I very this fares network and is go

as So fundamental as our restructuring, think we strategy. about our go of back part

than Our core going what ever corporate believe restructuring that remains on very, that's the we're and forward. and strategy the terms even for in work to intact, appropriate maybe sound it's of more And current very build environment. going

to passengers. got no that. we've but confident, around very getting There's very, we're more actually, So get

Operator

question the Darryl And next ahead. will Research come with Partners. Please go from Vertical Genovesi

Darryl Genovesi

your table don't number Thanks to They you for in you your I you're second few you Tammy, says footnote exactly just provided out you're also understand that service because how weren't obligations. made think it time. Hey I mean for think it the you guys a that -- debt burn principal cash but us $XX payments obligations, necessarily help for a everybody. payments. paid Can says getting the reconciliation were per million I your -- in backing that quarter. Hi -- day early

those So you're the on that And can you which to number? how extent getting to included? comment just are generally,

Tammy Romo

to no. intended as to kind burn, with, of I'd take really core spend. be I our is cash Yes just to start our off ongoing Really, you and happy through that. be mentioned,

normal our of -- debt. expenses include include cash are good of for operating our amortization we proxy we our then expenses. kind So And a

we So in factor well. do that as

so cash and it's interest amortization part, less of expenses, really, expenses debt for revenue, So forth. operating for just, adjust most our and the and we the operating that our

Darryl Genovesi

talk can about Okay. still offline Maybe and them. We can talk after. I'm I little getting it it. a Ryan into trouble having about

Tammy Romo

Yes. in detail, it. We'll essentially be that's but happy to take that through you

Darryl Genovesi

some through And is couple still subject Does Okay. delivery that to you're you downward of years that I Boeing. that then with for that number still next the think things said mean revision? XX working meaningful

Tammy Romo

some demand getting We right service. firm Yes. would environment, of the date based those into I on the now, shift don't we out, on course, we earlier. a back now, -- right MAX as likely of mentioned We're -- have

We As a just the end that December, Mike mentioned, that's year. yet. could probably shift of kind don't of case into best next maybe know

So the we've but with to flexibility we -- got Boeing, have and some shift is, work really to the point do that to out.

we flexibility So there. that's answer question yes, -- your to so is have the quick

Operator

The next Please comes with go question JP from Morgan. Baker ahead. Jamie

Jamie Baker

Good afternoon everybody.

for Gary. First question, probably

IP liquidity? that believes which its American wouldn't not liquidity Why is we similarly a least of dollars potential contemplating. at its co of worth as So your source intellectual several been had their property represent and as program that much billion website loyalty are half about

Gary Kelly

suppose it is. I

able we and I our senior don't anything pledge looks do to good we're unsecured, where our think credit. than and again have other to

needs available That are that to So pristine we've we to still overall but through. in see potentially us, enough We've -- billion low liquidity. more than carrying. us $XX.X I'm we got interest them. things sheet, be I happy need think a balance don't to those And got

don't we but it. need good, all that's So

Jamie Baker

All good points.

capacity? There's there into get it shouldn't back really as And ex a I CASM, that getting to why industry didn't same face to And about. internal to constraints admit a Second the early question before call retirements. has is really whether pre-COVID question, something was doesn't, guess Alaska your of on probably pieces. but some returning fuel once smaller capacity. hadn't the been it? CASM on idea my wouldn't dive the it plan was it's I Southwest that topic thinking We the pilot you operational that than COVID lower Basically, I the came pre-COVID up compstat in given juniorization did. pre pre-COVID moving if

Gary Kelly

capacity? Pre-COVID than CASM pre-COVID or earlier

Jamie Baker

get to you'd grew Basically, the you COVID network. before, CASM fuel pre back Yes. ex

to corresponding You area status the up grew the level. Yes.

Gary Kelly

a at I some cost admit, to as would to number think be What timing have that. things what to consideration, we would because would question We that reductions. -- thing I need would cost thing it's we simply deferred some only permanent are we of that would least I one. and One point be think incurred -- give think reductions more have think all, -- your to fair to don't serious -- I agree significant through per with say. need The is know -- we I first I -- plan opposed I to what what that I want

this down. the turned world So upside has

debating a we what XX we're intensive right get in time care. and that working of in care, now, on So intensive "plan" kind fiscal worth We're horizon. And XX, of as like an it's for even example, we're it's a -- XX, to are a of out XXXX. patient kind working

getting So company on breakeven right cash now, the we've got a laser focus to flow.

way passengers. more going a So It's to take than we've that's to -- it's certainly, going to volatility experienced. and lot that's going take management. a take or to more other, That's -- lot got And the it's ever volatile one of a of take -- iterations.

way You your can't just breakeven. to cut

that's hopefully, instructive. So

discovered -- like efficiencies. I as some headed from have The home working that because is do However, example, we we direction interesting. an the you're pretty

or some the whatever it buildings or opportunity building whether future, consider will the in parking it a that capex expanding be. think us garage allow to I avoiding it's might

are there. there clear So I think opportunities

the allowed take to that very think way are that reduction structural us pay scales voluntary senior Jordan some our I that. electing because separation probably the people has that across they're program Bob cost led has

able it's to a ours. your to question, consciousness be to stream So objective we yes. somewhat like ought question, your in not think an thought, just have It's of probably of done your the and that never need can -- But -- fairness I need I again, that cost like but that. the and to prove that and clearly, we need environment, before in we crush to to this our to -- down we innovating keep that cost off. work be imagining to be so pull

bone. the which just put cut worry ones, I terms we the that have we One hold. is of there quite And digital of we've to and those things significant world the on in investments opportunities frankly, about,

So you ourselves a to the little appropriate too we'll not early at to foot that's the time, shooting give want make back a sure on to that's that question we're come But that. in that and specific answer. a

Jamie Baker

lot Sure. moving Sure. very of pieces, Thank really I your you but appreciate much. really, A Gary. commentary,

Operator

Joe comes go The from question ahead. Credit Please Caiado with next Suisse.

Joe Caiado

Thanks of question How the for that probably proposed the Good you've how latest like like compared for much. the described lines -- expectations light not do time addition something you've seen, to of My of FAA afternoon. first what training past, in changes Mike, rough comment in effort, do sort get Hey. about that anything about the a the your their really pilot to from Mike. that. the things FAA? you to changes public with on the phases and like did us the the need delays green very the steps MAX, asking you is relative the terms by on I'm period week once asking based in by recertification everything this I'm And the driven proposed or to

Mike Van de Ven

because service asking increased whether or or not harsher is of plan you requirements? our So extended are into

Joe Caiado

Yes, mean... in any way or shortened. I

Mike Van de Ven

work, have on are whether that frame. time length any adding constant is what our or there. there's project Or maintenance tell other or would work to that that shortened. Yes, the training we with I aircraft over it's like pilot communication the the And return-to-service nothing in things significant you teams

back in that it event So it a take we couple do time a that nine get And as I think available get the is that training said, simulators and pilot pilot day, us on We that. the thing per service. airplane will done go have I line, really of think months into the we training. to can biggest to

weeks get think within nine after it frame. rest of work to So we get then done the trained. can will our somewhere we time the And take that, XX around that most us pilots or of

Joe Caiado

it. Got

Sabre, question. the entirely it's of between of place? leaving now sort year? Are GDS happen, discussions Okay. walking do of if my you That's can just the curious, helpful. downside not you just the away a And Thank sever let's to end BBR so all agreement is ties reach with what's the and from you. old you second new going or Sabre? saying agreement a I'm continue sort even to in with discussions Are you question then

Mike Van de Ven

Yes.

and I is think want that's to move platform downside continue industry standard to want to the continuation customers to old an our that where platforms, of BBR to on just go. they we a begin

with. conversations it. But do point, years We've think move of just a challenging a contract. continuing or to I some worked one been since good companies in with they're company, work XXXX. And to and again, but you working and the you with need forward with. And for can challenge. terms Sabre two forward. platforms move I've get that's So to It's to to with Sabre, XXXX with of on business call It's always it at a

product. So to their get using Sabre we're still

still or and data some Sabre's We are translation of migration using products. -- data some

really the conduct GDS good technology a on just So one time world. we the tough Sabre had business, in nut with other, this is We've a company. how cracking

are. we where that's So

some are at we it, so. do at I there going conversations any point we no for time. point. this this expect can't going don't period conversations there of on So felt be But to

Gary Kelly

have And We've others. of options. got we lots

options fantastic new push We aggressively. And have really really, have these to going we options. we're

Mike Van de Ven

interesting. presence largest hungry U.S. to a today. Amadeus U.S. They the small quite Yes. world's GDS. It's the have They in strong presence. very very, very build is are a

good to Travelport the end three is live year. and up of resurgent, them well platforms. before the Now have have and we're going they

options. where do working a we we to not our objectives. It this OK good our be with are. us It's Sabre longer, point, out able This just little take Gary's may But have but a hit be with to bit -- company. to I'm able to is hit them we'll category. in for objectives. We'll back So

Operator

question. time go question Walton ahead. take We'll Please have We from our Myles UBS. one last for with more

Myles Walton

question. and Thanks. then first Good a just afternoon. Maybe another clarification

clarification Cares then draw is so the to the the situation defer wanted with loan finalize have issue and On side, the you a don't to you this the warrants? treasury where allowing loan, if is you to

Tammy Romo

We with are treasury in the now. discussions

still haven't say percentage sure because as to may loan September in too little We with It that. finalize on we we're signed a just we the of that discussions you treasury. term finalized XX, a really the have be to for but just small that to early sheet, know, -- but we're yet it's take all have -- we're

Gary Kelly

But we're too. not obligated

Tammy Romo

We're not obligated.

September on have the XX. be March, end draw but We required that. to September have of draw There may later, down we some to small on until close XX, would on

working weeks. process obviously still worked we through all So have that. through in that And coming should the

Gary Kelly

to But be is intent zero clear. right any government the just loan, have to again, our and take now not

Tammy Romo

That's That's right. right.

Gary Kelly

And is our that until September option. so XX,

Myles Walton

perfect Makes sense.

that form? middle blocked you've do over And cost Okay. until extended it just have lost I'm actually one or then maybe shape another of any seats, on or October. period time, you a way, curious, the in revenue impacting that's

Gary Kelly

for do our our -- this us The this interesting. expect intent forever, nor of do forever. to kind customers is not do It's to

why us did costing what So reach point, in put that. going flights we demand? load ear our sections capacity, have cost blocked at like that by lose But looks to revenue, see it's adding So factors capture we're cover honestly, we're if So really flights or right? us seat, aren't play X,XXX now. is thing. we weren't foregoing this something to such the the not middle on has this in and to kind right that sentiment those that What flights in of any additional the

so profitable. or X% capacity million you said, As didn't. so ASMs, quarter, will. $X probably of handsome that near XX% if their points for In it's or represented was X% XX%, XX% the and profit. It probably cover I we're costs, a

So but the pretty was was favorable decision. against it cost that net XX% modest, of the million, was an easy the XX% $X

in So good a we're position think I with that.

Myles Walton

Thanks. perfect. That's

Ryan Martinez

up All analyst that of right. wraps Well, the the portion Q&A.

thank any reach to guys and you you feel me, out today. If have please joining for to other free questions,

Operator

now you. I'd Vice Chief President Linda to like our today's begin of Ladies introduce Communications media Senior Ms. and Officer. first gentlemen, Rutherford, we call. and Thank will portion

Linda Rutherford

portion Thank the today. are all Q&A you, members of get to started who and Chad and the We'll our today. our media welcome media call of call with on ahead go

for if you'll Chad, So give a them instructions how up to question. on queue

Operator

ahead. And Instructions] Josephs from [Operator our with CNBC. come Leslie will Please question first go

Leslie Josephs

you Hope are well.

number the how XXXX? payment looking On the to recognize have just of support, company, just from time sure bill any I'm the bill you taking given that. the in the money separating you or left people cheaper costs do labor voluntary QX are at I'm over? that not expect how just versus salaries 'XX were off or

Gary Kelly

will you're PSP pay once through still The saying, if be -- to our -- No, September will no. No. we they're is money? answer there salaries XX,

benefits for. projections PSP, and based give the is our spending XX% it her is I to and way an it's the be. But salaries, again actual on and all wages for sized we'll the welcome of put that what up into appreciated, all the going treasury what request be. is of this, Tammy very our treasury below money. you of being folks, amount for far asked a turn came will back spending for out in kind and Romo, And what And said, CFO, would think while that very grant our was department point you basically, the

It's leftover. no opposite. there's the So

Leslie Josephs

is year. The way I salaries, wages lower wasn't than the just sure. Okay. benefits last

sure. wasn't I So

Operator

next ahead. Wall question from Alison Street with go Please The Sider comes Your Journal.

Alison Sider

wondering I It there's And could energy about it's of you with checks? if share then if you lot TSA behind kind temperature Hi. a anything could like was lately, -- seems things quiet. discussions been where that. stand with pretty of about

Gary Kelly

not the I purpose this energy I'm speaking today, Field our And Dallas personally, it. Love to are of efficacy sole there we just demonstrate to that, process the for TSA it the is test think trying huge advocate Southwest beginning for the if week, prototype And that. a of is Linda forth. Airlines. behind and Alison, so Well, for with And to

unanimous is America checks. for Airlines the the So its for in temperature support

So can't I lost speak we administration. not our the have for enthusiasm.

going against like United of way It's and up and of things it we'd more get the in virus. safety terms take would done. cases, States Obviously, on so moving they layer wish get I'm the the I this defense aren't spreading So anxious this. in to one

enthusiasm lack part. of no So our on

Alison Sider

one Thanks. And more on ask you if MAX. I could the

whole year, this how of or you've or their under process that is curious, or improvement new Just any of sort change in communication CEO noticed scheduling if going? sort

Gary Kelly

want to you Mike? talk Do about that,

Mike Van de Ven

have him. Mr. well relationship long know We and Calhoun a with

with has we so well communications been knew open had him. So our Dennis. with also, communication good Dennis We

good them So We of going the talk -- kept I with through to pretty have wouldn't complaints us informed on say They open. terms the a week are the we've have lines had communication. them what's process this. Boeing so and each it, of no close on. They've of has communication been with -- partner about in us stayed

Operator

question from the Tracy comes go Rucinski And with ahead. Please next Reuters.

Tracy Rucinski

from safety measures other checks, any would there that to temperature are Washington Aside you like mandate?

Gary Kelly

mask. that to mask thing Mike, asked is don't We it only And several chime with I come travel mandating been today -- out. in. and I singling for none I've mind. airline mandating agree times on the -- don't

We're Hepa we're I anything mandate doing think But cleaning. we deep everywhere. that mean a else we're doing pursuing. of are going mask, mandate if don't Mike, to We've we Plexiglass from We're in is the have who I physical that, distancing full up. airlines booking I lot. know one masks aside the doing physical to the the shields got for We've got cabin. we're in world airport. in of doing -- We're filters airlines distancing. few not the

the hear airlines' they're that and following And about the think the temperature checks. list pursuing temperature school piece fall you all their all missing of the and they're me these check. leads, and in back-to-school talking I protocols, to going superintendents districts is

to that's Mike, think is thing one that anything can be there add. to? point very I So sensible the would you

Mike Van de Ven

No. No. No other here.

Operator

Thank you.

David will question next Insider. Slotnick with Please from ahead. come go Business Our

David Slotnic

XXXX. through Is Hi well. aircraft that the be some or that taking were I you'd back? of you plan just delivery pushing after of that there said those to clarify, wanted is everyone. doing everyone's original that XX Hope

Mike Van de Ven

more XXXX to We return than earlier where time was a just today. -- projected service with take in no And at had is the XX We is MAX and -- would had be we for an the agreement it XXXX. was that Mike. than that aircraft this to back we Boeing

Boeing are those to environment what of need COVID-XX we that the have that have So of the the the like. MAX, looks with some and discussions and with delay that we

to it And for maximum. a something us So we probably XX that that. like less the have is than need feels

Okay.

David Slotnic

Okay.

anything carry that would a So financial deferrals that have penalty would involved or

Mike Van de Ven

just -- really order delivery agree No, trying that just really we sequence with. get an all to book, a it's it's

Gary Kelly

Yes.

It's like have way Boeing almost don't we deliveries. the firm for negotiated, to is visualize contract that, from here think I a to with the be we needs basically, where situation period. go

to Boeing because contract. be So has their completely that reset all compliance of with out is of

David Slotnic

you. Got

Okay. a starting then looking numbers people leaves the sense. That just groups any and or the taken year? of major scenario next the only furloughs which makes the is long-term layoffs not thing, at if separations, And who've the be of would in there other voluntary work

Gary Kelly

you question. will make we overstaffed, furlough certain I'm me are that conceptually, and furloughs among certain so there. work groups work let Are all, could OK? we decided is, is of others think I other understanding find your question -- anyone, certainly, sure Well, your we anything groups words, then other not lay if And have be not could are. there possible that work not off In groups first or

mind, flexibility I about more think these contract as things in think anything, where we large favor, And have to we at also their then can contract. population we of how it's have quite a employees least in by noncontract my frankly.

if with prospect. very ideas have pursue obviously avoid would we're but So what faced hard -- we're right we now -- to have working it. we'll But about we that and plans

Operator

come go with And you. will question TPG. Thank our from Please Edward ahead. Russell next

Edward Russell

the down just wondering that if clarity provide down be talked you XX%? be expect was Southwest on about that. XX%. you I could how I end a more you more about being Does year? to color people bit at Hi. mean big capacity about should Just the mean of to give

Gary Kelly

a now weeks progress. way think finding analyst significantly. XX, June we to changed plan that the the Yes, And three all portion, great had, that work -- for is had about you we're August if we as we to Yes. we're on were listening in, it. in And -- has that's of And a August. were

quarter, volatility should if lot I.e., to plan roughly -- it in yes, And and be demand almost lowering today, than it's need is you fourth so to that. know that of be bigger and smaller if Tom, prepared won't XX%. our more is have capacity going impossible frequent using enough. that of than we're can to don't that. adjustments capacity We'll just because now. to be rule a have thumb that. But Mike, And the to really to prepared like be to if right make I than be be the that have we'll we is be

it capped think me, you probably I at with our exit but some to flexibility there, have we're seems about program. XX%-ish, voluntary

Edward Russell

Got it.

do have So follow-up. Hawaii Hawaii your Hawaii? will about any will -- Do plan? on service your What part main down or fly you -- updates one of be quick

Tom Nealon

Well, yes.

islands, and going mainland -- of from having mistaken. today, in flights I final -- -- a But that two Very few back kind getting planned Tom. are Hawaii September, was I'm we're level them Hawaii it. service I a inner so We're be to of Hawaii. in get service. is the This excited about getting very We're about appropriately, moving if think really going extended to think that's Hawaii, to to I were island inner And California into return what really quick. the not begin service to slated restore I Ige our we're quarantine. And to market. so pre-COVID. excited Governor were do. the back think pretty That's we quarantines confused. frequently. build to real to our Just market get to I'm We're the and all the

things back today, So as Bay go, that get well. soon good as as to get travel, we But excited with the Cancun, serving I we're are the think I as pulled think to we're true anxious thing soon businesses Montego back. to those only we're is Hawaii And international same to Cabo. in But as allowed. we're and back

right but it's time to we not just So but we're now, anxious get going, will.

Operator

from Diamond next the comes Please And go News. Randy question San Antonio with ahead. Express

Randy Diamond

the the about back the and go Thank originally, Is Southwest with great? you for demand year, not to hope San XX they of your had to International time. of XX. by end day number as a said that The from about the flights now Antonio that double off at --

Tom Nealon

Yes.

Antonio. you're what San not think out seeing I is -- picking we're

from In fact, our CEO's San Antonio...

Gary Kelly

Express-News. and San Antonio the Love

Tom Nealon

we just significantly. Yes. to But back pretty pull network had our

X,XXX running day. So of We're around somewhere typically, X,XXX, we're a flights that. half

had we've So contract. to

stations any Now we've flying we've any this but in. closing our without had cities, or pull done to

we're is that. doing of where So Antonio San markets one the

So to we're though is anxious capacity its to up get it back prior demand levels once there.

Gary Kelly

perspective to the so you're for have trying the that good we're to customers. with we do a our that's our inferring position say community is continue to And where cut supply much to are options. match balance well, schedule. but thing competitors. here just of flight than demand, flight lower stronger is your that not strike good we're sort We're virtually And I to in the that you trying no And very coming offer supply from, this one a trying would

regardless. you'll think still -- I So

good I still perpetuity, this intend a cut schedule. don't we or I promise like back good think capacity mentioned, markets domestic Hawaii to that to that of haven't flight you'll in our think eliminated I but point. and San a can't haven't schedule full Antonio. we're have San any for at into Tom we service year-end you'll at to still very in have not, flight including And matter Antonio whether --

Randy Diamond

will Well, have year a you the you around of it day, XX a the or stay reduction further just flights steady? if see think following we do end by would up,

Tom Nealon

I'd try you. lead rather not to

end know. And I answer don't think just optimize if think are you flights peculiar I down we have with as less can I give get stick flights, sometimes we up solutions. on and think a with think to have today, more it and good complicated, we will a to to and things so infinite I It's too you'll schedule any compare an some that. XX%, flight don't way markets Exactly schedule. good that how airline there's and is where it how trying

-- to get will that golf, trying just like on flight just a say you viable I to think the is very just have trying schedule. green still to trying here

be we'd a can't of. I we you specific happy give with be -- proud you again, that and something answer. But would And

Randy Diamond

where the we center, XXX in a have center And reservation Antonio, people. on San employ finally, reservation you

that to layoffs, So furloughs center? the no extends also reservation

Gary Kelly

through Yes, the the end the of through year. whole company

Randy Diamond

Okay. Thank you.

Tom Nealon

awesome. are they And

Operator

Rutherford question-and-answer our closing concludes Ms. would this to to turn gentlemen, the and Ladies conference I for over like remarks. any session. back

Linda Rutherford

all you Thanks us being Chad, appreciate with today. and

any you questions, Thank feel please us If XXX-XXX-XXXX or to reach at visit other you our follow-up www.swamedia.com. to communications free can you. have group,

Operator

concluded. The now for conference presentation. Thank you attending has today's

now may You disconnect.

Southwest Airlines (LUV) 24 Jul 202020 Q2 Earnings call transcript