Southwest Airlines (LUV) 21 Oct 212021 Q3 Earnings call transcript

Company Profile

Participants

Gary Kelly	Chairman and Chief Executive Officer
Ryan Martinez	Vice President of Investor Relations
Bob Jordan	Executive Vice President and Incoming Chief Executive Officer
Tammy Romo	Executive Vice President and Chief Financial Officer
Mike Van De Ven	President and Chief Operating Officer
Andrew Watterson	Executive Vice President and Chief Commercial Officer
Linda Rutherford	Senior Vice President and Chief Communications Officer
Jamie Baker	JPMorgan
Savi Syth	Raymond James
Brandon Oglenski	Barclays
Duane Pfennigwerth	Evercore ISI
Sheila Kahyaoglu	Jefferies
Helane Becker	Cowen
Mary Schlangenstein	Bloomberg News
Alison Sider	Wall Street Journal
Leslie Josephs	CNBC
Dawn Gilbertson	as USA Today
David Koenig	The Associated Press

Call transcript

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Operator

Good morning and welcome to the Southwest Airlines Third Quarter 2021 conference call. My name is Rocco (ph) 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. After today's prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] At this time, I'd like to turn the call over to Mr. of President Vice Martinez, Investor Relations. Ryan ahead, go sir. Please

Ryan Martinez

for all Thank and we today. us today, And we it will our Chairman And you you, thank for up open And then the some have remarks joining and call brief A. on Rocco. share and Q of Executive just our a moment, Bob Vice President Watterson; and Board and Vice and Executive Officer, Executive Kelly; President and the President Commercial Tammy Officer, Jordan; de Romo; Vice Operating CEO, Gary and President Chief Incoming Mike CEO, Ven. Chief CFO, Andrew Van

Just quick a few notes here.

we had results future which non-GAAP are performance our a reference that are few first expectations. which differ based of actual make will our our non-GAAP those expectations could special excluded for results items current So trends forward-looking results, from our and substantially purposes today. first-quarter will we on we we second, statements and in from our And remarks

release morning and our Xth Investor started. And tuned New press that details stays hosting just are our topics. and more see on will that, December we we York from on a both for IR please and website Day ahead more on this so So reminder information for go the our in get

over Gary, So, to you.

Gary Kelly

much the the bumps and historic began the pandemic with schedules, And course, very better, us that immediate future left the but short fares, staffing and we passengers, even operation miss and plan a weakness, saw August, attention required though, early lot and taken. balance Ryan. in for surge, obviously, for Welcome delta to recovery morning, our reliability quarters of revenues of our terms we us It to Call. action variant us which And which quarter. caused very good of models have encouraging. as Thank our you, came been in of affect Earnings that everybody. a and five for Third Quarter to would've After XXXX revenues. in was dramatic

quick messy. So, I potential, also restored would travel be very encouraging is the and first sitting fully also and airplanes that are effect on do to from business with in XXXX not a virus the think to do huge see as to challenge to the far on earnings the very are and scenario to are and too all and this have XX to considering like manage to much They the thank especially to to who of short top remain and take well call I they Mr. the for and give And of over always so latter turn perspective, time. I'd challenging that, to a CEO, a my I It has we'd been circumstances, course, the I will day. They performed them. be we've especially be still capacity And ground. people, overview. warriors. And this considering not period them our our with any through exceptionally business that It am priority. our Jordan, is volatile. proud of want a It illustrates us to things recovered from as levels admit unpredictable all our its burden Bob will incoming our can people. very And falls enough of gone the

Bob Jordan

on turn to continues I well. to items good Thank you, a I'll before it you The Gary, and be hello touch go over transition to Tammy. few with really again. everybody. It's

it's work announced full leaders last month, changes now with to an the to and As our the senior part me them. team in reports finest they and are leadership of the industry honor

energizing and being and and the 'XX witness specific the to to with my an and challenging despite see environment. highest December. in But operating our of and stand do honor heart, single They those take my priorities long-term heroes and on together we is one incredible advantage are from their it's job dedication, of share we the working it's are their plans priorities We for pandemic our emerge opportunities. and will that every beside day they them as people

about side XXX a As at corporate we leisure off on We the had Gary the would solidly XXXX with The of quarter, profitable. demand beginning that third were the terrific traffic a of said, bottom. aside, momentum the cost the as cases especially as levels. lower it COVID quarter have million was above just actually been well resurging and trend on good quarter

As both trends the XXXX. business trends nicely cases with are for line in front, booking and and booking down holidays on have have on recovered subsided come the leisure the

experienced you prices. I the Xth. do want ramp the from continue as key the beginning inefficiencies, the headwind As we -- touch issues aside fuel for increase quarter, the from as October up significant fourth just know release, touch in we a to jet on in to

day. that to ATC going that from a is delay number of significant to a more started end caused shut Our be but talk operation position, widespread afternoon that effectively Florida of this, stop with a took to the aircraft our through the Mike ground down ground several challenges program and out and recover. days crews that then and about

customers expectations. did we further want result, your apologize employees. And I challenged inconvenienced to to employees. customers, live our just not thousands our both to we We up a our and and of As stellar just

we laser-focused we in seeing our to very are in operational staffed positive Before continuing getting key trends both improvement is And performance. absolutely operation, invest on those. continue actually the to and of this, were our and

and tremendous business the the are X. has tough, continued is historic dip starts And deliver. that therefore, fourth, what customer fits our needed, with especially on both unrivaled made that Bulk Looking up the of current starts back our is up We our efficiency. our X. and really goals have first in in when our our The to remains basic: Restore fourth advantage, progress quarter operational reserves. staffing. reliability operating staffing tram continued ramp we of And caused focus to schedules, the And short Get the ways our tough modestly which people our X. media the and forward, we've made network again, there. COVID the and service that hospitality those they culture. and environment. by that lack of people as very of

last Our are the advantage people and and our individually. challenging them been months collectively XX has

opportunities. our our It's announced Earlier support us of has and carbon you, just set have advantage customers, XX-year to we I'm people, plans. talk pandemic our culture week, highlight also our goal to good like that by sustainability XXXX. stewards. will short-term tell of sustained specific the we issues I Our overall this long-term and and above positive about And becoming all, our as while neutral will through pandemic. important it very briefly our from we're emerge to manage, power the we I'd of a in plans planet our

program from network clear As least of more transition headwinds pandemic on older, growth compared largely is the and fuel-efficient we demand XXX initiatives, in we've more fuel-efficient be MAX priority but be carbon incremental the points year the over I our and route occurs a about 'XX with our The as dollar-for-dollar our recent productivity ago quickly. the of with this work per and proud XXXX It forward to inflation less near-term, ability and related Above pleased sustainable a they're all our compared really together will namely shortfalls, Day that at the that so another will the deliver a and year passionate Tammy, done are solid eight. take as considerable the look will just carbon pull over aviation reducing the our a travel I'm XXX plans all, match. restore with provides about sharing aircraft; top retirements to to offset XX% to commitment it in intensity. that emissions progress proud and wrap our while of the December with to grow our grow Boeing commitment XXXX, And team X recovery. who carbon and but 'XX while is of MAX will will generate to a this X, loyalty and pace by progress up the number time business Even are our dependent network partners to and to and and XX% accelerated a significant in falling emissions And our plan our a XX reliability, I only are 'XX, I'm to through that is anticipated goals increased to planned one the are next cost in Investor improvement of and a And by available fuel And decade, offset especially XXXX. year and margins, that with This work and that carbon restoration that, travel and by at lot trends. next customers of on be XXXX this staff. program it in recovery to bound. primary the XXXX. time turn mile emissions and no the both profits commitments seat operational it plan made has specific

Tammy Romo

outlook. overall everyone. PSP $X.XX hello million and a of and overview sizable financial you, of our and color in some generated or I'll XXX expenses. basis, driven the was offset our and per share, portion quick by a On a GAAP Bob, diluted that million Thank a benefits quarter third provide profit salary, proceeds this wages, we on XXX results of

was share. Excluding our per benefit smaller million items, loss loss $X.XX special or and other this XXX PSP a temporary diluted net

not on the short-term so, with what trends before the since impact balance we relatively to the this are in debt, are came overall and by currently pleased variant where were Delta began. impact and second And experienced has resilient from results the in above variant. our have of Overall, our pandemic of expectations, demand a than cash began. sequentially need third we July at the well in this This improved excess where of been in of as as previously the and travel be them of Even Our we variant step-back today outstanding disappointed sheet. in less earnings bottom-line time proven revenue billion more it our clearly quarter we investments we much quarter. Delta to and is has are result XX.X we be, of line

profits. this have Before additional quarter to were able getting for in full into I and we to spirits that for to the our to them my combat effect commend began accrue offer as I I They're continuing in [Indiscernible] GAAP together pandemic been third since appreciation of pandemic. a the to employees. result specifics, them want thanks sharing also pleased work our am profit and

Third We quarter. of plans, was ranges, quarter, miles premium unit quarter. pay, provided in throughout were other for was the well as and so thoughts. to COVID-XX cases regarding due September as our as seat improving pressure our cost non-fuel in overall in that our better well third these guidance available trends four and guidance, the to fleet with notable were and gallon as up to four points I lot I a as slightly primarily better and control primarily and revenue just Operating booking will ramp And few last than had revenues cost costs. soon than revenue second after half of points press update additional of pleased add our investor release were per due within guidance. a costs cost cost We am began trends, you decline. And color fuel

pay provides two-points our roughly cushion, anticipate quarter third of will premium premium currently unit tailwind terms pay have in we flight that need scheduled provide in we reduction more from quarter. cost forward, In reduced to less fourth to going fourth we as staffing a

and unit to Our inflation X on of alone cost a points and largest costs. salary, X airport basis. quarter driving are ongoing categories fourth year-over-X-year These in cost are wages X inflationary points categories benefits, X

market, of higher-than-normal inflation, the benefits, also represents and wage which roughly minimum wages, pressure wage. is have salary, we on the is rate the X It hourly unit putting First increase in cost points labor pressure, which on tight the recent wages. including

the should we support hiring extended addition, In from all year-end, groups across we and to by everyone back nearly are work operation. leave current have

our inflation, costs, in airport continue rate than overall experiencing on environment. XX will this footprint increased pressure are new and increases have anticipating year-end be higher airports has we in especially network, by rate so Second, to the we we our much board. across The are properties

over with I compared are from XX% exacerbates the future Also, better are down network years. historical vaccination the of program, attributable cost depth operating to be to in next X seeing. cost pressures we productivity our able few pressure back quarter, airport our as pay notable space quarter beyond expected fourth expect to points are and XXXX, trips fourth-quarter and add X Our facilities above leverage lower to These we're norm. incentive our the in underutilizes and our and inflation which to hiring, frequency fourth currently we general than have inflation.

$X.XX quarter, roughly $X.XX more except fourth factoring are expect We lower fourth fuel are currently better fourth inflationary expected Even outlook trends loss persist which prices, XXX million in of underlying to from the quarter majority prices. quarter quarter hedging fuel cost able is we That encouraging in gains, quarter, in even higher is fuel which environment. subside for after bottom-line and said, in price in quarter hedging gains ticked though the network. and we higher for strong in with near-term, are high to provide up, higher fourth this than third even a is to is expecting in our productivity revenue pressures sequentially. restore hedge pressures, third the fuel Fuel here these as than our trending expense of have

flight XX. April currently Our schedules published are through

as positive don't will in XX compared year-over-year We net quarter capacity orders plans our XX to options aircraft expect year, we decision continue continue We arise. on them down XXXX. X% have currently to value to quarter exercises year, next replacement that yield And options deploy taking present evaluate with of we network. down points option first first currently capacity additional will Regardless our and reduced and have if we we firm to on fourth be the capacity quarter next a X% XXXX our believe XXXX a the basis.

XXXX, our you capacity at all seeing commentary far outlook on we will our about plans As share looking I'm more financial and to Day other as and fleet there. and Investor forward

with that, over So, Andrew. I to turn will it

Andrew Watterson

we Thank our provide quarter earnings revenue to and you on third the and and of To step some beginning from experienced release impacting Delta I'll July. bookings along disappointing revenue of began through an was detail. for around saw and impact through revenues you, March trip performance, slowing recovery traffic color outlook to revenue our increase more point inconsistent with The Tammy. trends trends back variant of the we August, cancellations some pass-through take additional and a in it mid-September. about the our on

In terms leisure we impact for the that loss, across in brunt business geographies and of revenue and both the September of all travel. bore overall saw

we we As business have tough with a step-down demand, in yields September, demand saw when with in slide manage. the are to waves, especially prior

for low was is experienced overall XX% Delta impact in the success However, silver XXX in XXX than the what in we less the The estimated the to another a quarter. prior be third million factors million lining QX, better maintained waves. had QX, range severe in we from terms that COVID of load for variant

the operating down As stalled you range recall, may through negative mid revenue from September February. XX% in

travel demand So, year. this today more much than time resilient is last

November, expected leisure leisure holidays healthy and and quarter. December has booking supported we've While for seen trends bookings from sequentially the bookings cancellations business. and and by have improved throughout both stabilized, the far, there's in fourth improving operating Operating for revenue normalized, across since an a demand. to have substantially curve thus revenues decreased are all to and impact Delta fourth the revenues lingering The mid-September. increase geographies Trip are quarter currently improve in variant,

booking levels our with encouraging. curve in XXXX fact, for holidays, currently overall the is trending is line which In

experiencing the but at estimate early In of we business less back travel some We far a business are pent-up faster get range platforms; XX%. from expect pushed XX% both what in thus in continue of our campus business November openings down we pick revenues year-over-X-year, July we back chance we business demand, prior up took remain down to Based trends, improvement all and managed trends, December a in terms previously our end Sabre. than a as plan Amadeus, business Delta has this many in were is current Year. a cautiously and the and lower we that into we year-end. XX% step XXXX, Travelport, and optimistic after roughly September to in now to are three improvements corporations modestly. variant, revenues at This shared trend optimistic on business and our as steady the is bookings by Over travel improving live the GDS about reversed on managed August down October. and impact see as But year-end New until climb believe there overall throughout there's we

businesses launch We from have we with a full are channel from array volumes seeing channels for are Early choose we distribution great friction working a response now Southwest Southwest, from. they removed GDS indications the and incremental gaining can through GDS that fares the our of and GDS. the through have

and which also channels expected, for from shift As their channel broader our choice. some of connect we're to channel the corporations perfectly fuel to us seeing to GDS, sets is up okay direct

performed in islands. issued impacted were travel were Turning they to line more in the third look Hawaii and continue our travel warnings new as markets, severely with well against overall quarter. markets to expectations

opportunities growth it our I'll of program our in continued over with offerings. the other rest and network. progress of lastly, about recently expanded we're markets show of convinced in these broad-based card remain line the We basis. with third with Mike. the improvement to have all And year-to-year program quarter credit we improvement revenues to the growth which shown a of turn recently terms And Rewards However, Rapid portfolio, that, Rapid on across our in XX% Rewards up seeing

Mike Van De Ven

operationally and had for clear and Thanks, travel our people, and hello that food employees. everyone fragile. wheelchairs concessions, our facing industry those still services impacting customers call. customers transportation, hiring for like supply airport and a and things ecosystem with hotel headwinds challenging still a quarter of We've for We're environment; it's including Andrew, and we services, mass and our experience requirements challenging and and on the you are all have chain our very is

our environment a of am were just that arena. grateful they're the of we I and and operational number in than engage half and them to in history in ratio with, was us DOT. on-time XX.X% Our help for quarter the last results sacrifices industry. the extremely to our performance through performance, the exception lowest customer third handling reflect that industry, was to this industry we at making year And on-time it, their delays lead minutes very navigate year. We was course, than a generally complaint less difficult with slightly have finished our those significant were quarter continue with to employees quarter bag the warriors. less XX special the our volumes XX Xth We and of Xth a best while of support XX.X%, in which have third performance minutes, did when to And the bank

our and very, we care our So, overall customers. satisfied very our to hard while of I'm take worked we can, and not do will better, results, people with

of we focused couple are move forward, a actions. we on targeted As

typical a all a we in First, into combination of from of load factors, out network. reduction largest by high our especially summer performance frequencies going on-time and been and impacted know cities our has an our that

roughly that we bag airplanes pressure our averaged much in inability and our hold complete, our fact, on-time the had day, factors, And took nearly to COVID. had we turns. through on course, activities, for the And And for that volumes - performance. time XX% given experience the in tended then customers. flights had connecting largest and given pre full In more every seen extensive than of heavy those put scheduled the what to they coming out reduction and activities mid-August. from load our including we And to reaccommodate July connections, more cities frequencies

the our that activities was again, volumes September, welcome was to it a below improvement, improved historical customer mid-August our performance performance declined as those period. and in And So but through lessened, on-time XX%. that

hiring to factors holiday our increase airports handle So, to in near-term, when periods, staffing shift also load efforts the focused to we're more have more to activities. the the give with activities our staffing increase over those match and those at our tools we better us using scheduled accurately resources

as So, where then focused at move and I additional on-time around forward. schedules, going will times our it's scheduling are to we for looking more boost future the performance those expect stacking issue most both And in expected. resources execution places opportunities ground but needed In crew a on keep our balancing our activity separate second performance this flatlines time to with from long schedule -- connection still on-time our as resources. a is is related

employees the go to should before to up into to our that things their based those what that we plans our be just to expect get had more was mentioned time and match open environment assumptions that like models were it'd leave, assumptions vacation rates, going while of planned. the and were them various cushion, particularly of we All the And as show operating to work, did, the on time, flight to be shifts, and those impactful staffing positions. have enough fill that I've staffing pick-up shift And the in or they adjusted bid crews. then reality sick able And weren't to that provide open for they and home through. same to to takes they as summer

the And impacts impacted. the impacted routinely of slides. sick were and what on overtime that Our were our to and were that's all we reroute much than people. weekends, rates pick And accrued and were and those exhausting our trends our up higher pronounced reserves those causes more time overnight, open unplanned also expected, unscheduled cover and

we adjusted to that, with our a in as online quarter announced, along we've new schedules and break. from previously quarter. fourth downward a pilots spiral those have back flight that have boost attendants we flight And actions reserves to it's leaves will are XX% to fourth for And crew that returning our extended do hire coming So, just the which as begins our We'll to current cushion this summary, our variant attendants. flight staffing wane. around to made SEC add improve environment. and also to begin and include XX% and impacts, pilots schedule to Delta COVID for our expect performance to through both our we navigate In decline our add to staffing we've adjustments trends, on-time more continue

As to our XXXX. closing, and full balance good environment of want be staffing restoring I year, distractions, and just begin in frequencies I and to our network scheduling to of stressors headwinds begin position we've share the a stabilize, know is In those of environment our all we'll is sacrifices and in our it operational turn during this them. our Company tremendously And support and with tremendous made you. their continued customers employees to cohorts. to I'll back that my thanks have the that, proud pride take Company of express and know to care to our they significant of Ryan, had I have

Ryan Martinez

up. Thank I have to follow-up you, And if to just keep please queued reminder and believe X needed. your Mike. questions a a analysts we

So, our begin and analyst ahead Rocco, go Q&A. please

Operator

sir. Yes,

the comes begin Please Today's Jamie now ahead. question-and-answer will from session. first Baker, Instructions]. [Operator We JPMorgan. question go

Jamie Baker

story? opine -related hope and could dividends as on the notwithstanding Gary, the Southwest prohibition, you the before to part everybody. you achieve PSP afternoon, buybacks of milestones Good reemerge

Gary Kelly

balance that pretty support to we'll that the make want earnings stock that. Obviously sheet it's want much against to -- We'll that. Jamie, the supports think, our sure make we'll sure balance plans. want answer. then And capital to a that I Well, the

we had a that so used days, decades, in we the sparingly we modest share used Company were were fairly old and we In use. continue So, I repurchases the growth, we've test for in think the to growth. litmus and would investing high dividend because when

very this that's front us. in that in what got we've everybody room think I is of hopeful

I line sight pushed I is thanks is the little sure capacity, a got second have resources now -- making all we quarter, the there. of with we've in to what capacity, got quarter thing We've too mentioned to that. is demand the airplanes, the in we're a and encouraging constraint airport think balance hard people our right just to that I there third but

down going But got and a to tandem. the paying finding I nodding with has that's ourselves Tammy is at of an for work returns is objective just or returning shareholders, a two so repairing earnings, to we're -- balance different both it one have interesting to be certainly years. generating those opportunity in So long debt, in not it our this will to head levers, environment than sheet the other X least feather degree, one her you here, It'll think very us, priority, is and of growth next obviously an having over history changed. in is the

like to So, -- Bob, I don't you'd add? anything know if you're or Tammy, there's if

Tammy Romo

No.

it you've covered all, Gary. I think

Jamie Baker

Yeah.

check prohibits mean, going follow-up a anybody that a contract one ten-minute people show have to bags. longer are. thing, Okay. changed. not more don't hopefully What a currently I that what on means suggesting the can stage in you I've to better labor obviously, you else you but And what there, that get know happened sort initiative, That's prevents from I'm do there's ever imagine prevents obviously thinking contribution, of guessing And and flight I'm pump. you got is XX-minute that more age to if there back I'm then attendant laugh. turn. has than demographics cause to to back anything this and wondering I'm turn. my that sizes, helpful. not I fuel aircraft having the infamous very But today? just

other some the through? are of haven't So, that constraints I what thought

Gary Kelly

customers. you describing. But Mike there the week, But technology CEO a the X and answer open flight and an It will asked X genius I and need seats when XXXX -- he concept. empty. just address long look I help give fact, Southwest the And technology to in assign my old flight. this that became Jamie, I to rolled XX first that were to not historic in are you're here. you was designed his take the when Well, turn and me I'll does is out some turn told on who going make was XX-minute team there's first what seating the Mike, other when in both on that don't colorfully about the you airplane Muse passengers Lemar very minutes airplanes

passengers tell will experienced funny It's customer would So, these all you factor obviously a buckled I predate are was the With much push bags. you airplane term. their can was before story, and have other the change, the with calculus the XXXXs the the one this, I a bags, more everybody that the gating with belt. seat connecting rarely in we less but seats, me, although in old in actually

of So, think we can now. stories I all But quaint in interested what do probably more -- realistically. can you're kind

about So, Mike, those you talk targets you to want have?

Mike Van De Ven

in the so, turn Yeah, there that than yeah then in you XX-minute that back and flow are things and you true down mentioning, I we several think we when turn remember just all the but back and And those longer in the days with today Gary do the and loading different clean, we in, start components, up, they are -- make things components. were all different was it on the focus the of turn. break into

it [Indiscernible], and healed on they times them from for again. X the wheelchair the they need minutes probably then a minutes now are And X on right or adds so, and wheelchairs getting one several getting get of people the making or lot items sure that of magically trying when big just airplane, accommodations actually That and do to X the But off. adds off, we people. ATA have getting is slide with loaded

So, turn. just I minutes wheelchair of ten process adding the in to is that five think probably

those that things just thing second get The is people bringing -- trying little That airplane. got you the are things. the primary bags on normal. longer all have the stored. more on we've new than X a those bit overhead really skies takes airplanes, And are bins the the new to And

of I started Airlines, ops the Southwest The a is when airplane. agents first third back rent that thing for door our

times. rolled will some some X the just us the back about. on ops our bridges, with sometime of there you've that's closer Today, of the mobile and do and get down our probably cockpit technology was coordination to to Gary talking or things, walked at one X right any agents handle And that -- trip door the of have make that We platform walks And out they're to so, airplane. the was the allow what the long depending of door jet to ops they airplane. agents had

will So that also. help

Jamie Baker

interesting and you for me that everybody. enlightening. ask Thank very Take question. letting Okay,

Operator

Syth Savi from go comes today question James. Raymond next with ahead. our Please And

Savi Syth

will you've just a drive to that And afternoon, going get the forward good not you comments I number in better across can back of in can bring think I what back you've level depth. better maybe to growth given capacity capacity you and curious of that you've network would your productivity. and Hey, getting just your was breadth, that that, I increase airports Tammy the past about depth, the and you level know back recoverability. build about where basically, be new in at everyone. productivity to to the talked of added most that back

Tammy Romo

I'll you Andrew, start and you have. let chime thoughts any in off then

give you we to aircraft the currently. just how idea Hawaii. of to least We've just new and talked yes, cities, we've at added of our course we've deployed here added an about So XX

that or in network, less all we which in have look together, if you we when those that's So, about XX service, our will. deployed have Hawaii you means pre airplanes at in either new -pandemic aircraft XX of cities

we've as that obviously so, you we And to near-term the us then ahead of want as And back to in we're as pacing we kind a adjustments as quickly capacity here as taken you. but a be through, XXXX, will backfill to course covered our can, to factor, making staffing and -pandemic. going of so go back to some were demand's we our we least of add to we get levels at with where and look aircrafts, back to number capacity pre need

more are that, thoughts? add -- a to couple details those anything you'd of like to So But high-level just any Andrew, or thoughts.

Andrew Watterson

about network. a the Yes. talk that which large that, going year fully To that, at our a take numbers Tammy very play. a if we subset restore is to longer-term to about. subset talking the talk us aircraft depth like that's This build on implies of about, is we over restoration that, And is a look you it's overall that but

And business-oriented so, markets. the depth markets are primarily

business recovery, day-to-day to, ones anticipate through which And expect was the pace Mike be a business We that seeing over also of we the helps the the depth of our our with So, March to step change year. see facilitate in travelers about. through summer markets recovery that of summer. markets won't level depth same restored in and density progress in talking recovery, a appeals over travel return, those micro part depth as fully we But from year. and schedules we the March end bring expect our Those substantial are that next again for network. really of

Savi Syth

of comments. And about you're helpful. more and channel a little the super that those to you mentioned of could I versus quickly you. how bit what That's I might up some lines GDS the shifts terms if Thank wondering seeing follow if expectations? you on just up in was talk

Andrew Watterson

we're X before GDS. X/X we It live of from seeing happened just when Delta clearly Sabre, a incremental -- variant. the benefit the with So, just

of from indirect it's though, the planned channels these with given bit X. actually had little largest So turmoil you to conclusive shift really clearly variant, a corporations all context, of some to hard how incremental, the enhance, The our of is give the the trends. our to direct for we Delta channels, be use it

and for they're And using direction using travel they're So, it they and TDS. our they're ACT, different now using is, using swap purposes. populations Southwest

X of channels, who traveling the the Company So, those that's now. that really population going depends at amount right of on each is through

now statements in about here what see we shift. business case it's it's for business and our hard up, planned as finishes ramp and definitive certainly will in make to So, dusted incremental travel its out of of the we shift kind but more be, overall clearly right done a substantial amount

Savi Syth

All sense. thank Makes you. right,

Operator

please question next Oglenski Brandon Barclays, comes with go today Our from ahead.

Brandon Oglenski

how for But into ongoing in frequencies some taking regards were And about XXXX, everyone. good talking know And do guess guys shorter-haul needed recovering I Tammy, Hey, the we you Tammy, is talked in for that I of to about back questions but about. just longer-term, XXXX think my don't those projects costs back invest so getting you I on or Bob like this you here? if afternoon, think to thanks guys in. side the technology network,

cost environment to the way structures not to back an benchmarking costs? back maybe to get think about is to where unit we are can right prior or So, it, we those

Tammy Romo

quarter, ex have. thoughts X kind start can and just here on then in from that But of are we where was I you Bob, up CASM and basis. you third picking about X.X%, with yeah, in can up a our chime any was year-over-year the

some and clearly, points, so as costs. was got we've and to -up And currently. premium X about cost ramp ramp And that related said here earlier, I and that pressures -up pay

down our on that's So, about if third CASM impact, below you slightly X%. would capacity, quarter for ex our XXXX quarter been third that adjust have

had got here all new as year-end lead that that's the back this of to And as hire we've shared So, employees while we've those extended voluntary left. we're to those number you be substantial temporary the course, we've we'll benefit hiring substantial employees implemented some cost of is employees, goal and of our by retirement the who know, that taken a year-end. here savings program. by program X,XXX a year, And cutting many during and replace so certainly those we've pandemic, enabling measures

the So, back comes is we that had the cost point come during being capacity will those as the reductions back. pandemic,

capacity puts cities down if our capacity new Hawaii our haul here, We've investment. about most pulling talked more. down much you and competitors, at XX up point different from us has and of We've So that and allocated in flying. much our a ramp that the short than medium still come have

very So many network -pandemic. what want we're And I online and again, to just of pre our it costs point up. here is staffing was are back from our back out different

inflation rate of as that's we of in got today. and where in we've XXXX. also we experienced where then the several from we earlier, And So as much kind pretty inflation are wage board. And across airports covered years I were

that, productivity about So, experiencing lower here. operating from we're environment. is tough just the this behavior environment when the that of Point changes you in being, really different we've to talked some add

of the operating to pre our majority of productivity focus is was a your here. thing gain long-winded network. just lot as but move want answer question, is will biggest there, there through a parts we So, getting our on forward, the restoring here know to thing the clearly I kind regaining are moving And leverage main historical -pandemic that edge. of

is extent pressures be I biggest going as productivity focused our on going but we that we're just be to question move what to we're it's right mark forward, So, inflationary think the I the of improving the have now feeling.

Bob Jordan

behavior, we're while for takes training, staffing, so We people there. we're behind. a had hiring, productive, got we to you've -- got those extra of about back, have are largely the now. I still kinds so and cut and and network a had are pulls off become Yeah, maybe behaviors, to it can't starts we while they're give contact. cost schedules, through is you that takes the it just we've in so different think got thinking is inefficiencies through changes you've around. We've COVID COVID moving and I'm folks -driven, business right pulled you've the fits nothing It and obviously in had just were XX,XXX-foot people cost them comes I'll a inefficiency that because way normal of get those inefficiencies the COVID direct work camp, literally come There view, have all through

as to leave sick excess have We normal. compared

on had folks as to due to bringing We folks than earlier they normal. -- have That's planned. connected likely those more compared back leaves to leaves extended from

to that apart the what of stuff kinds it's all of there's tease hard is So, in there. exactly is value And each.

the and productivity to I'm to this that levels of the COVID. out to X get prior from to back on stabilize of all savage. back to ourselves work is Tammy. is X wring all -- back to -pandemic to And pre we Job cost then to get that and pass work efficiency. with and Job productivity had then So,

Gary Kelly

and could I sight a I if people, line pile if you just think airplanes, in, we've I would got of airplanes. about And think airports, on one --

Bob Jordan

Yeah

Gary Kelly

to that will back control. that And people absolutely Tammy. are goal with to will much and our to productivity that. the agree work -pandemic, that. absolutely our have And and that's in we get I way be had pretty going But to I close I -- to pre think, through just that goal. be Airports, Bob The we're

Brandon Oglenski

to going need is to mean, incremental I to that guys forward that levels? you back get hiring productivity it get

Gary Kelly

and no. yes it's think I

the would per before. The States United to think rate. it people than the like is right So be now, participation analogy more departure takes about it way

and actually flights ticked excess sick, less rate Our through on participation is today Bob than people it's historically, producing it, leave, more etc.

ground got we'll I XX to we terms for to and airplanes think get that productivity in and that rates. prior is on that plus fleet got mean, add doing to behind The year. airplanes us, next of will we nothing. one the trend the sitting the pandemic We've achieve on back As asking we've the what's hiring you're want revert

the that side. that be airport a hiring and will and on So airplane the productivity will absolutely address contributor

Brandon Oglenski

Thank you.

Operator

today Duane Evercore ISI. comes go ahead. from question next our Please Pfennigwerth And with

Duane Pfennigwerth

Hey, the time. thanks for

contorting their curious kind So, could network you if you've environment. operation. perspective network Every of that been demand what from to a share the has learned I'm this carrier strain

I about lessons the dig away touches Florida. are think we operation? talked plans, moved learned? And lengthen What the what your how length. through an capacity effort to stage of in future markets you types media are the past if In of improve you you've from much your

Andrew Watterson

we thing so is Gary first we with schedules end and per year. referenced. overseeing we October in four people and big the lower based through the on more curbed from just And up Tom -- and trip, the I trips the took moved think made of staffing ended Bob summer, we

issue. staffing capacity the of initial versus was just the So level

day-to-day reaccommodating more is it free is to it night. needs the the customer, get recovery or fewer have be that second accommodation without difficult when where The crew, options even airplane the for to you the

that recover easily that back we've identified that allows number us operations as exogenous are day-to-day the will shocks And else thing so, recover. our that something when weather things help bringing more one from density, to are or there

network is so, It our the going part for end end we're during well like which And summer, at a to -existing year. was of next is but we'll used versus And look that takes look kind core that will -- at using have what year, be aircraft that pre be next that our would back we least come -- or next similar. in over be lot the to a the what say, getting of of to in growth that's results. XXXX it using the options, that a very start operated where pandemic. aircraft We'll get good whole produced lot while and the there, to breadth at

Gary Kelly

is on so short-haul I it as length it's or Andrew, a leisure chimed but markets. a that -- think don't tilt of you and stage long-haul in Duane towards And more much this,

to markets that up our business But huge a higher-frequency Hawaii that we those distances. a sent frequencies, short-haul, here, out. longer a lot thinner because we've lends and has traditional itself on service. beefed were impact Obviously, may of averages be So

with that we've leisure restoring, the which business adjusted be back So, and beefs now, up business-oriented, which backbone want to helps to more Andrew, and recoverability. I think we more, go will it's short-haul, the more

if had. So, we've I don't know there learning is that a

a and we the want we to which want markets develop We encouraging all anxious because that our we're we way that's playing thought. now strategy. actually can thing things has I in traditional get really nice rapidly. think profit. demand now sort out drive where I the They'll think position added. hoped restoring are we the playing to we But here a mean, networks, of to very Southwest recovered. to It's pursue we're out going just like new back keep we is

Andrew Watterson

correct. The And the very leisure That's absolutely restorations portion low is correct. risk. should be

higher slightly customers, leisure dig of the rate it of connecting which cutting we you checked talked with And if actually wasn't business In connections bags, have nominal Mike customers. issue up the about are flat, a down. bags much It's because leisure were so customers customers. at bags it kind fact, connections, into more of

a network, mix, business-leisure as will operationally, proportion a should so, get bags back on to which and of connecting we see down we tailwind coming bags the And be better the also

Bob Jordan

Edwin, are network we're our folks this be around. think going network our they recover have obviously, and wasn't I ourselves. then the to crews They customers and folks obviously tougher analytics all done I and and operational stuff. on to of learning frequencies our understand depth, off move top we the actually on what what our And If mean, we back side. doing. to it's understand

all So, that. we knew

-- that there. hiring talked a again, think staff two and just to about -- network get the some I get depended this think learnings that support I lot. we've to are tough to We was it on

really but or by were think side. we the that, it important that to for all just operations, crew the fly, -- lower we as is would example, thought And margin we staffed weren't round the the got the learning we like I it's up to that operation had just especially the you time deteriorates So, as things on and cruise. we especially is, you've eat that margin reserves be. faster was ready point second And how summer, the margin whether cruise

centered And a have network that cruise around, crew with as move, to the to margin operate. of that So, there. have this, about of a not especially again, it's just in to you network just as is really it important me is, learning the things, frequencies, kinds to margin on how and Mike talked in part you those lower use then

than more that the the design. network there really they So, to are were were on importance me there, learnings of staffing,

Gary Kelly

fastest pile work. talked earlier, about van it's be be just is, Duane, It where can at learning I'll it hotels, be. it you where planned And the I've business on have had and And I on-time people, as biggest staffing at their here, I but think tempo Yeah. to it everybody having it and into on whole performance our dependent matter people people the and up-tempo is. could in can drivers, industry And people, business doesn't this that's -- very got can that's ecosystem. it can their their everybody with industry's it end crews. enough is business if the airports, issues be that but an working had what our you wasn't as have

it's it. agree slowly said, people be and else get want operation in we totally people, up-tempo needed to more we that so, frequencies. We that I need everybody that To And everything more with the to tempo down. me, industry an

Duane Pfennigwerth

more assume That's super your helpful as grant on that support that, on front? availability, point and labor you more seeing seeing I front? ground, for maybe are Are any you apply But whatever that relief you any I that Are people staff, on operation. creates normalizing open clouds a seeing for last show and it positions? you. on guess demand people need that segway rates, you parting that up. ability just to or hire Thank you to airport raise is

Gary Kelly

because is just back more difficult world, on smaller think the it's front, folks States labor the Yeah, pool. United look labor hiring just pool across I the hiring who or the have the come into whole not with is

So all that's we where just start.

applicant terrific Southwest we of the to and a be is get rates benefits, not which to The below a are is little struggle normal, no, expected struggled to do Company, a applicants. number applicants. get not jobs. so we've terrific employer, open terrific But given

X. things. one. think months I less I or mean, a couple no XX spent have the little one. bit a of We been hiring issues no probably basically,

machine there dismantled put work business. folks hiring and we the other them of kind of the In into that and parts fact,

that. you decide the to that and hire, have then have once rebuild actually team decide to works you was probably So, to April, which for all us on you

really of serving serving into you to can it's have or back So, by the new airline. to folks this moving, and the time we working really year got before July -- August

we again, You also think It struggling more But training. jobs, in ever, more have to not environment than especially are hiring to get it's example, rebuild ramp. competitive people. for entry-level and tough is overall, your our it's but I competitive a

a being like in competitive need and get for market, the parts the a it's need struggling ramp it it's we're people, country, just at not them no, actually to point the certain and hiring, to But airports -- of we On find of in we and a for -- the while to takes point more lot, Denver example. hiring of from competitive work. the at

we goes things techniques contingent the used required thing. of new testing in of background instant kinds into where checking, all using past, those instant somebody the are offers had of training -- offers, like We kinds ahead drug interviews, not their and

like been many is to don't over I and what I'm X,XXX to a And hire I -- to -- your next optimistic, remotely. and So that to of everybody think I past but share, know that fairness no, bet here trying I I learned been do this don't I months, we there the lot the think dramatically. over and that -- in to you may they've for XX phone, year. have be just like on is working close X,XXX have fall impacted lives and would your one do question, thing I

now. speculate done different all I you that, habits we on your changed and So, because have things can you've are -- what for

peak leave, Our went same leave? have people the way our people that we didn't went especially in the people Bob, XX,XXX and on on that and are out

Bob Jordan

Yeah.

Gary Kelly

was. that made call just assumption it like show we're be was them up. okay, to an to that come And They're it's going to it's time I not. going Everything's say, and back. to going So, just

think it's I what had bam, earlier, we the had to that for describing, up and a to so, like repeat time, pick do been underestimated just sudden, all And of coming this a said then personally into pace and I just was I'll messy. do, we nothing I long Mike year.

well, will but our think with I that it's So, out back quarter. smooth new a both while, to be trying to hires several the get here It's not and existing employees going that take all to going as in in back fourth we're

Bob Jordan

your pool? the the requirement I've And is it it lot, hurting gotten the that -- done, which question no. Is vaccinated, I'll to have hires you? a be is limiting new last And is applicant answer one and is short

we are terrific. vaccinated, are vaccinated the require that which new think that. I to for Airlines, vaccinated out or Southwest you Airlines, XX come Southwest is number because less people have, work people than decided you drop get to number in percent not the or hiring process words, want to and hires Whenever our be the and and to X going of which in plus X% We of X be already other we've seen able to tells XX,XXX process to shift In tells an order work impediment, for it's applicant

Duane Pfennigwerth

Thank you very much.

Operator

Please And our comes with next Kahyaoglu from Jefferies. question today ahead. go Sheila

Sheila Kahyaoglu

comes talked you Good extensively. much. afternoon, so inflationary of labor when it the that some Tammy, about to guys. about talked pressures Thank you and team the

how guys to and that I thinking it your affects are about as So, want gears, talking about route you fuel higher switch maybe prices expansion.

Tammy Romo

Yes.

fuel cost it's know, cost historically has of certainly X/X yeah, So that, structure, an been as you our input. so

pace As think we the about of our expansion here.

really the value that have we're fair all the with EURXXX costs. book -- hedge million. to our least other it mix we is, great launch is at So, in hedge our the prices And over news here. just help market place goes the the of market good into a seeing But

lot So, of costs fuel protection these should continue we've some are really to see higher. said, see still fuel prices at great levels levels. at higher got inflation in place we we're and a That our going fuel to

So our plan capacity we plans. future cost taken into all the rest that along as of will structure just of with consideration obviously, be our

Sheila Kahyaoglu

so you Thank Great. much.

Operator

time Becker one question question And we for Helane from will please we And more last go at ahead. today. our have take Cowen,

Helane Becker

And I Day. for Hi this be last you year? call? your to Operator. Are much, next thanks One, back very is you'll and Investor X for everybody, questions. back the time. earnings for be Gary, guess going Thanks

Gary Kelly

Day there for February back you more I'm date time. and be to you Investor X, so is I'll and January. haunt transition going Yeah, come my one in See

Helane Becker

right. And I'll guess in is -- I technology. All respect see you fair we'll Okay. really then that's December. Well, enough. see my to other you question with

technology for what's ramping more a wondering, like ready You and for exposure. next, over next that. of talk now lot up, on last a just on I'm you if bit money And about that getting travel more few getting TDS the what's And years, guys ready spent front? could business little

Bob Jordan

To ongoing central of technology, all everything and me, revenue -- obviously can point every comment that of they Company in that Airlines if those operational is that of some we I and Now, priorities have tell do we're Helane, Mike this at And December. investment on most we they it's some and in headline, that to of year part everything and sharing we'll be this. you do would them required Company. with kinds had think you are those every central a we -- and Southwest tools. but so I I technology It's our would are at are initiatives a we to because dependent. I have

Our tools people have that our at tools operation employees. heavily operational the complexity, in could invest terrific. we in to their and and there tools, they in manage -- to continue manage day, but better terrific, the help are we the provide size use to and particularly scale I good need that complexity. They're but heavily our think is a

that? rank modernizing is investment want continued order, you Mike tools. to calling to our to are to add on -- our I Mike, number I X operational objective just what the and so, our do in me, And if had

Mike Van De Ven

a modernizing But about MAX we rolled operation, systems of just think year, significant to we you Yeah. maintenance and to last here our in aircraft one covered -- enhancement November. out Helane, our Bob this I and that XXX get piece mostly. the it our got our when think rolled we've into

close that's our if old. big will, replacing XX systems. you enhancement, big years systems our is that in was And maintenance modernization, So to a a it maintenance

systems. we we our you crewing that of We've could different the things have things So, opportunities areas. got We've in got I kinds categorize think want we those to in that flight want in to do planning. do

and coordinating And turns We have our optimization do are we as wanted support to investments ground. and things to executing in we on we make that technology. we the have our of want decision then

those more go little So, bit talk things more that we Day. we detail and want do, of can we've Investor in array our a to got about good a

Helane Becker

Thanks, helpful. very That's everybody.

Bob Jordan

Helane. Thank you,

Ryan Martinez

Okay. here Well, everyone time our for at us that call joining I of analyst today. puts appreciate us. the portion

Operator

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

Linda Rutherford

media everyone, queue if to today. instructions Q&A to you, to our call can up on started Thank members with We them Rocco, of give go and portion. welcome question. ahead will some the Rocco, get how for a and just

Operator

our News. At Schlangenstein we to momentarily ahead. question Mary this [Operator today Please instructions] Absolutely. with roster. And comes assemble pause go first Bloomberg our from time, will

Mary Schlangenstein

don't not prefer of you corporate Gary, today to you're against the support interview Southwest with that XX.X% really who employer, to whether people to and within travelers an things forcing Coronavirus? in is, their a by minimum federal concern about can my and to some earlier vaccinations the employees comply Thank were you question that bare were you. way, as say said that talking airline you that been you get mandate. in And an how vaccinated there's that saying going like have lose proceeding people doing

Gary Kelly

X Well, Mary, it's things. I think different

to executive that that, and seek comply vaccines, doing to the and we're then vaccinated, encouraging everybody can't We Number an X, we order their option get accommodation. is to we're can with if they that's do everything have mandating an that.

one, want them it. -- coming So, is to role us. from I doing to to don't inconsistent, it Government's who This don't States, faith and everything it's and empathetic the just United is as that President for the enforce I those can don't implement be we're it respect we am that our see in that, U.S. not I mandate a I see good simply with vaccinated, -- of

any going to in and be health we're that our believe terms don't of safety, I than So, other any in difference spot airline

Mary Schlangenstein

And already if who of vaccinated? you employees disclose were not to consumers your the percentage help would though it are

Gary Kelly

not the is And with comply majority XXth. now, part of majority the November be reported, just would them the of haven't reason. employees have point. a deadline federal many them been speculation at we yet we a our vaccinated, super right will pure it how of vaccinated. from are still our who just the those The the But to Of we have heard large on for those percentage whatever already -- reported. we've right got executive have and have order who have reported, Well,

just patient sharing get information. we we us. to When be with that obviously will be the November XXth, So

Mary Schlangenstein

very Thank much. you

Operator

next our today And go ahead. with Alison question Journal. Please Street Sider from comes Wall

Alison Sider

thanks so Hi, much.

couple that the network the the has all talked still of given caused, it that over the that out months last just retrospect, and the I right breadth cities. adding complications You if was of taking new of some And about depth all you the in curious, strategy. your lot think a with guess

time, If still months to that couple long in you think you it could back complications do all? in it made go pay at those going run or last of that's you off sense made have the question in the

Gary Kelly

that Well, I disagree created with assertion complications. the it's

the and is required depth. manage manage situation challenge to Alison, irregular a same it when way is by resources XXXX, other operate flights people, just but there's match strategy our the for plan great with a our with XX%, operations. got would don't foolish to a through When trying serve that's And to clearly effort into get there's to primary where customers. we demand cut be enough pandemic we do than up to have -- we're We've backbone, the work just no on schedule. with Our fly

has well. very So, It's something about enthused we that we're forward. served -- us going that schedule

in have to quickly But happily some and the very, kinds any need very we very a network, and to depth and Now restore back the be shifted welcome. go of that we event in will this -- resources, whether we've we summer, schedule is them had just more period, root They're cause the or old this challenges people that had schedule. need had whether we'd the we

Bob Jordan

data the proves think I it out.

look September you of and the we look and reduced amount performance beyond, If our August at from flying. then when

increased substantially the way performance all up on-time Xth. September into Our just before to October

the we that is Dallas expected. there's probably was fact more one in added runway it which than -- big You a

broad but satisfactory. performance Our that during reduced still activity of network with this was period time

not we things being helps tailwind more a all recovery, a Now, But it's cause. root business necessarily because helps equal. our want it seeking, depth we're it customers,

Gary Kelly

there. built still years. incorrect. And as the also we not big have That's if It's was bones a we from XX where it's over but dismantled were, network, change it certainly are pretty the

Alison Sider

you. Thank

Gary Kelly

Thank you.

Operator

today our go next Please Leslie ahead. And at Josephs from question comes CNBC.

Leslie Josephs

other everyone. still everyone plan question competition summer just, morning, for particularly have thinking Good other how about reviewed? any exemptions was coming yet back network back or reason my is that from competitors just haven't up with there destinations? your we're go. the on that Hi. really international people ramping And who do next places being to year, unpaid What afternoon, good for the pulling or second concern that in about So are approved leave to from curious then you're been your the

Gary Kelly

just you guys mind, the if about are our take talk let And here. I'll minutes going to on I'll vaccines. I'm what letter. the X. don't objectives you you give X

can promoting. to We ties everything that pandemic certainly want people vaccinated. to past, -- I with are we're and that believe question. for we get so somewhat we one to this that path end, do in to want encourage Mary's is this that the We that's the and

they employees unvaccinated. incentives, using to are We punitive an charging get and vaccinated as have opposed tried to encourage if to more further people like with approach as a example

which try latter, to doing former, So, the is we're the we're not doing encourage.

as background that's a important think I So, here.

of to in our that is people in take terms health, their safety, way their in of objective security. care terms our job of every can; terms Second, we in of their

I think everyone should get vaccinated.

view much other when be can. there, for information obviously pretty any out consider and that want find and much you However, for, I has you confusing And to respect you how is people. views to there support especially

feel that people it's don't vaccinated. to get to I to me up So, force

question So, you your think those I of our that are that answering two important that's in know objectives.

was important distracted up like a people won't thing holidays. they fear a people something that this trips our The as able or As The customers In got to matter, we've work vaccine thing quarter. last other I for have words, this in be want practical mandate. to is for coming the last want our job. I

with And that. so you in And to that so, fourthly, that we it's that ties I'm would that sure -- ties recognize simply put objective, rest. readily which into

government are We a contractor.

fleet, we're in is example, one, a have us important And It And reserve African with which air We we just number number of two, ways. variety the helped for refugees. the an to been charters. as military civil part of decades. with serve

are us. important to those So

that, employees government In carry the are addition passengers we a to carry contract. mail; of number customer. under they our largest as this We

if force mandate, of on contract government everything need terms government but to everybody from we're with can do an working the to trying working didn't get that And do taking not work to that's that why don't have we're get the this off the right is that balance would in anybody. are vaccinated good so actually said our order. And But December, we're know working that House, is is to maintain going the order the maintaining evolving you government work that. it. we out I'm in we're that their faith if or White who heard all don't can to we employees progress the And that So, work that's going our to And of seek that What to we that going people the people But we to we for going fire to to got is with contract maintain we just we not not ask that we can of a trying job to contract. is what evolves, job get we campaign agencies of sure to so to everyone to that the very with, is the they're and -- And comply on we're already and not with figure executive direction, makes we're again, And clearly, fire continue getting our way think the our all contractor is and in and December It requirements some no lose that perfectly nobody an wanted the in that we're and find which people is we not what process the Mary's determined general to we in anybody whatever going from what direction very respect And get compliance. that. do a force expect. they on our Xth How sense means status. vaccinated. to government the accommodation, was question, White tie House. do I doesn't care and to vaccinated. status. with executive between in meet not to we the going It as evolve we communicate I've do with through on we it. I order to are people here we're

Operator

Thank you.

next go question as Our sounds today Please Gilbertson, Dawn USA Today. from ahead.

Dawn Gilbertson

Hi. Good it's morning unbelievably, here. morning still and

is this for think Bob. I or Gary

over mandate last as consumer forth. from mandate Airlines airlines On cancellations from the beware. tested said warning perspective, still other why vaccine there a -minute say positive, -- outside gave are not? issue that the comments so examples buyer to Could up the could say say could holidays? made And in testing United that yesterday if you one have he and going travel last follow was, trip guys follow-up far pretty through regimen not, some going didn't a CEO this of He that place. any this that potential lot as potentially, you holiday strong he this And chaos of you vaccine a so is the of have -minute people put lot about specifically.

how gets a is like like like deciding? to you these the -- would would is? get seems And your for Southwest people just I thank So, thoughts Is know also are guys and Because who rigorous on to that. it exemptions who apply it I encouraging to you. secondly, process people

Gary Kelly

not who they Yes, people White there holidays. being the the we're House clear work is not have travel process they going being less complied ever, And that that accommodated. with by has much we through disrupted to that disrupt travel. or a do vaccinated want that either understand during not And been

and on So, with House we they White direction clear, have made of very well the all aligned that. are that

is to and to My this people accommodations, again duty busy of care medical. and it's is is So the let of within or the to would disrupt of I our is the Airlines. Southwest Linda season. and the we religious is and what With that and take travel, during say, ADA function are that them duty customers, but going Dawn, holiday just terms to this my not any our -- respect longstanding to medical take team this; especially who our in have we're to for speak believe have customers' VII and something rules we a Title Company. know know religious how accommodations. in It apply you're Linda's I of for welcome department a to of experts care

get So, do see it's is we What accommodation now we we're it. at are so that what there consistent. experts not new that to requests right anything we're ensure to and trying can

of we're and take good them. work of to accept terms we deny. we our In care who trying with and here Obviously, people who

encouraging vaccinated, new and thing has nothing I've period. since to are In Only the that's We get out terms changed nothing of been vaccine that bet that, there. we -- came doing encouragement, people there's is efforts. order a we've there anything Is with the vaccine and working add? we good this through and are want you way else executive that in changed to got mandates best that faith our

Dawn Gilbertson

that? What is the [Indiscernible] on

Gary Kelly

Now, sure.

Dawn Gilbertson

government? from you this are deadline guys on an the Do you -- seeking extension

Gary Kelly

our using We're best efforts deadline. the make to

XXth, We November not the have other happens. we of asked make We're our from of because on to great process, see get you to In We'll see which we'll an words, where to date. Xth on the the accommodation deadline the, what for employees is because period. Linda? vaccination time the two-week extension. Anything December seeing want add progress and key

Linda Rutherford

it well, education what in to it's get our accommodation awareness seek efforts is be they employees and need. is buckets, handled around an two you if of one to just that and to or vaccinated that think I No, is all-out

Gary Kelly

polarizing this think feelings among and it's political a both it's on issue, of some everyone are the strong there question. I as very And on knows, call a issue, sides

we're side our people, and the to whether do to accomplish one on of is job of Southwest, of darnest my to care take take or to So, other, going our they're care all that.

Dawn Gilbertson

Thanks.

Operator

gentlemen. and Ladies

with Koenig David from The Please comes question ahead. next go Our Press. Associated

David Koenig

on as Good but testing a they administration an asked clarify and Do assurance employees? the as is my to early on And maybe them, as such number mostly vaccinated let wondering Delta vaccination you questions gave afternoon for of that and updated question some why other and -- earlier been the and question, have a United then I people or folks things, answered, just with I instead numbers and you that apologize. just this of couple an have can't not but accept of as My percentages I'm the raised Gary. do of at your contractors well. and yourself from accommodation American. will

Gary Kelly

up the two drinks have executives with I agree calls. I that thought opportunity before conference David, can't least that say your at to ought alcoholic to pass these just

done say will in that However, room this I one has no that.

Herb And subscribing the I not I way, your Kelleher least yet. that we're not I've and believe but questions. So, it, at talked forgot enough to now

or be reported super And working responded was? are we or those they have remind Oh, meaningful far not I'm November a be realistic. vaccination, testing. accommodation have a We've I idea of a do share prepared percentages, percentages who I are. or percentage But we're the have would heard to the whether either don't helpful I to how vaccinated. know believe and no employees to that not And so towards. the me they what the got percentage what because first XXth they that large or vaccinated On yet, The your question because majority of there's have don't hard that would from relevant an for majority just deadline call our will

David Koenig

was I the in wondering [Indiscernible] administration.

Gary Kelly

No, not. we have -- of course

a the accommodation. we. You've executive And medical get either got religious accommodation do or order, and so you

on the out, there's and obviously, We're Now, testing. testing OSHA a there's in not the those regulation, are which provide that. has who aware for order for accommodated, requirement come whether guidance of proposed does no which

point. reconciled So, this us for the two not at are

We know are working all on that we fronts. know front. you yeah, on what But

David Koenig

Okay.

Operator

closing the for conference session. Thank This back turn to ladies to any over Ms. concludes and you, gentlemen. like I'd remarks. question-and-answer Rutherford our

Linda Rutherford

Rocco. you, Thank

our any They media Of the course, follow-up, of are XXX-XXX-XXXX. have group. standing at communications who by please members contact

swamedia.com. Thank us. always all joining visit you www. can You for

Operator

for presentation. Thank you, today's ma’am. This thank attending conference all is you concluded. now We

and You may now have your lines disconnect day. wonderful a

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