While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. And with that, I will turn it over to Tammy. And then, the other is based on the customers' trip that they just took based on the trip you just took would you recommend Southwest Airlines. We also ended the quarter with strong double-digit margins for the month of March despite high fuel prices. It's the right thing to do for cost. 2 out of 10 airlines and on-time performance, which reflects well on our people. I'll start and Tammy can clean up here. Is there less growth because we're just going to continue this? But the impact to the delivery book from the Boeing quality escape means that the -- effectively, it's the kind of fourth quarter where you'll be -- short of the aircraft and then for those schedules will bear the brunt. We have had a number of items. And there's -- and the flip of that, there isn't anything that you're sticking out as weak. The next question will be from Dawn Gilbertson from The Wall Street Journal. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. I know you guys are saying as our other airlines are not seeing any signs of demand weakness. Sure, Matt. So, there's a lot of evidence of strength. Southwest Airlines (Employee Development and Retention WebNo. See how working at Southwest Airlines vs. United Airlines compares on a variety of workplace factors. Thank you for the time. I didn't really understand it. Boeing has been forthcoming and transparent about the impacts and what it's going to take to correct the issues. Operator, please go ahead and begin our analyst Q&A. Its adjusted net loss came to $1.5 billion, or $2.67 per share. Thanks, Andrew. So, we give them that first experience, and they come back. We are 51% hedged for our second quarter and estimate our second quarter fuel price to be in the $2.45 to $2.55 per gallon range, which is roughly $0.69 lower than our first quarter fuel price. But, as you look into the second quarter, I think loads and yields are strong. Zwischen Weingrten und Donau in Hollenburg bei Krems: 72 km westlich von Wien (50 Min. It's hard to know on the inflation front. And then -- it's really the typical summer destinations that you would expect. We were just right at restored to 2019 levels in March, which I think is a remarkable accomplishment and I think industry-leading in terms of our ability to get there that quickly. And so, that will, in many markets or some markets mean we have a too big of an aircraft at the current level, if you will. So, we're going on five or six years here of not overbooking. We will take our last question from David Vernon from Bernstein. Please go ahead. Southwest Airlines is an amazing company with rich culture. Again, I was talking about the advanced hiring is just one example -- an example to prepare for high levels of growth. We have a lot of opportunities, but we want that growth to be orderly and measured and as consistent as we can be year to year to year. Ryan, can you talk a little bit about what kind of load factors embedded in the 2Q guide? Invest better with The Motley Fool. As a result, our full year 2023 capacity growth is now expected to be in the range of 14% to 15% year over year. So we're by far the most rewarding airline. Southwest Airlines Takes a Different Path Through the Pandemic We have not done any of that since 2017. Southwest Airlines pays those in the bottom 10 percent $19,000 a year, and the top 10 percent over $87,000. As a result, we have lowered our full year 2023 capacity guidance by roughly one point to up 14% to 15% year over year, which impacts our second half capacity assumptions closely and fourth quarter. Somebody that's not already loyal, what's the value proposition for flying Southwest these days? Afternoon. And Andrew, I would say -- Ryan, I would say '25 growth as well. Most recently, while on April 18th, we experienced a double firewall failure that resulted in an unexpected loss of connection to some operational data. The remainder of the increase was primarily driven by operational disruption related expenses. Southwest Airlines recognizes that treating its employees well creates happy customers, which results in financial success. And if you can point to any specific factors as to why you think managed business travel is continuing to recover for you guys. We'll continue negotiations with the unions representing our other work groups, and we are eager to get these deals wrapped up, so the remainder of our employees can begin receiving increased compensation we are eager to pay them. We'll just have to -- as we get kind of mid-July timeframe and get a view into mid-August and into the fall, we'll have a better idea of how things are shaping up beyond the sequentially strong second quarter. 1, the constraint will flip to aircraft constrained. Please go ahead. Southwest Airlines COVID-19 has continued to make staffing the airline difficult, particularly as the more contagious omicron variant swept across the nation. The airlines founder Herb Kelleher in 1973 introduced a profit-sharing policy that enables the company to share annual profits to its employees. This now puts us roughly two points lower than our original capacity plan for this year, with Q3 being one point lower and Q4 being six to seven points lower on a year-over-year basis. And then, what is Southwest dependent? If you think about this time last year, what we did is we -- as we did in COVID, we would republish our schedules because demand was so vacillatory. Human Resources at Southwest Airlines There have been a number of things. But it's one component of things that happen every single day, but no, absolutely is impacting certain days our on-time performance. And while the managed business recovery still isn't consistent across traveler sector or size of accounts, we expect further sequential improvement in managed business revenues from first quarter to second quarter. Hey. On the growth, there will be carryover. We are very fortunate to have a loyal customer base at Southwest that we do not take for granted, and we'll continue to communicate to them about our remediation plans and aim to consistently deliver the hospitality, customer service and operational reliability they are accustomed to from us at Southwest. Yes, in the month of April, yes. Salaries at Southwest Airlines Co range from an average of $53,028 to $141,343 a year. Highlighting one of our stronghold markets, Southwest is the No. This relates to the recent news of further supply chain challenges at Boeing. I forgot. We want an orderly growth. From September through December, those schedules will be less than originally projected. And I do think it's because of our investments and winning share. As a reminder, we have a surplus of underutilized aircraft and our fleet due to pilot hiring constraints. So, that is a drag. But then the additional growth next year, that's really depending on what Bob was talking about with reflowing the aircraft. [Operator instructions] And the first question will come from Alexandra Skores from the Dallas Morning News. We actually publish those schedules with some easily movable aircraft to hedge our bets in case something did happen, so that will be fairly clean. Learn More, Southwest Airlines(LUV 0.89%)Q12023 Earnings CallApr 27, 2023, 12:30 p.m. Southwest Airlines First Quarter Results For the first quarter, LUV had an adjusted operating loss of $284 million, which exceeded the consensus forecast of $192.7 million. WebSouthwest deemphasizes the creation of a formal organizational structure. We are currently in discussions with our workgroups to enact this increase in pay rates.. We want to grow. Yes. We talked a lot about just regular inflation. We will be moderating our overall hiring plans as we get into the second half of 2023. Jamie Baker -- JPMorgan Chase and Company -- Analyst. In addition to the recent aircraft delivery delays, which are not reflected in our contractual order book, we continue to reflect 46 undelivered 2022 contractual aircraft deliveries as 2023 deliveries in the order book, further outlined in our press release. And so, you're just kind of managing both of those things together. And so, we're not -- going forward, we're not looking at dealing with any sort of materialization rates or any change in the booking curve by changing our overbooking policy. So, that's kind of a good segue, I guess, into my next question. Ryan Martinez -- Vice President, Investor Relations. So, I think still good growth, but managed, measured, repeatable growth is much better for the Company. OK. Dave, I'll assume, you're done there. Thank you, Ryan, and thank you, everyone, for joining us this morning. Please go ahead. 8 km sdstlichvon Krems und ca. But I think the question was others are maybe changing their overbooking policies and kind of what are we doing in that regard. It was a great partnership all the way around, and it is a beautiful facility. But as we look ahead, driving our unit cost down is certainly our goal. Southwest Airlines Loses Another Competitive So No. We're doing that. Southwest Airlines salaries: How much does Southwest But in terms of bookings, no evidence of any sort of hangover. However, the quarter was not without notable accomplishments. So just great progress on that front. There's two north-south runways, one left and 19 and right. The Dallas-based airline announced Thursday a modest profit of $68 million for the final three months of last year as the omicron variant of COVID-19 continued to make for a choppy recovery for air carriers. They were flight instructors, pilots and aircraft. Support the analysis with evidence from sources on the web. Travel demand remained strong thus far, but we remain mindful of the uncertain economic environment. Southwest Airlines ranked world's No. 1 company for HR So, we have aircraft effectively that we are not producing capacity out of today because the constraint is just pilots. Well, we put a lot of emphasis on building the team over years now, adding technology like the GDS access. And so, it may make different decisions with regards to load factor compared to our old system, and therefore, that element may be a little different. We continue to be in a net cash position, and we continue to be the only U.S. airline with an investment-grade rating by all three rating agencies. And also given that the capacity cuts are weighted sort of late in 2023, I think there's more of a variable cost component helping to offset that. By signing up you agree to ourTerms of ServiceandPrivacy Policy. Please go ahead. So, as we refill that order book, then we can look to how that -- what that means for '24, '25. There may be marginal improvements in different parts of the country, but it largely is what it is. As we look ahead, we currently expect solid profits here in Q2. No, I think you covered it, Bob. It will give us time to bring out inefficiencies. It certainly helps with cost. We are -- we have ongoing efforts to renew our fleet and there's value in those fleet modernization efforts. It does happen occasionally when we have to downgauge an aircraft from an aircraft with more seats to fewer seats or for rate-restricted, things like that. So hopefully, that helps with just thinking about capacity next year and how that relates to the order book. And the next question will come from Alison Sider from Wall Street Journal. We -- that are stacked up forward. So, please refer to the disclosures in our press release from this morning and visit our investor relations website for more information. Regardless, we expect to continue making market share gains in the managed business space as we gained another point of market share in first quarter while we expect to grow passenger volume from our initiatives on very solid yields. The Motley Fool recommends Southwest Airlines. Southwest Airlines (LUV 1.37%) Q1 2023 Earnings Call Apr 27, 2023, 12:30 p.m. As Ryan pointed out, we had record additions in terms of rapid reward members in the first quarter. I think it's really what you would expect in terms of where customers want to go this summer. And so -- and that's -- while there is more close-in leisure strength today than there was pre-pandemic, and it's certainly less than what it was kind of last summer and last fall. But no, I don't have any specifics other than just acknowledging that as the capacity is coming down, we're going to go back and look at our headcount needs. That means not changing the flight that we've already sold them. OK. It's a priceless feeling! Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. And there's some trends across the industry where others are making it harder to do business in the managed travel space. Please go ahead. Schloss Hollenburg ist ein solcher ganz besondererOrt: Klassisch schn mit einer jahrhundertelangenaristokratischen Tradition und dabei anregend moderndurch kreative Anpassungen an die heutige Zeit. The airline had about 5,000 employees with COVID-19 in early January, Jordan said. When you look at our brand scores, customers new and existing give us a whole lot of credit. Southwest Airlines Employees 12 Lessons in Employee Experience Average Southwest Airlines And there's airports where we currently operate and they've had expansions with dates and infrastructure. There is still work to be done to fully recover, but we are currently forecasting a substantial improvement sequentially to the bottom line with solid profitability this quarter. Southwest was only able to achieve a profit this year thanks to $2.7 billion in government support grants, money that was supposed to go toward paying employees salaries, wages and benefits anyway. For full year 2023, we now estimate CASM-X to decrease in the range of 2% to 4% year over year compared with our previous guidance of down 3.5% to 5.5%. There's stuff that we will start in the back half of the year with the aircraft that are coming, and that will be a carryover growth into next year. And capacity, as always, is going to have an impact on our CASM-X at the end of the day. Thanks very much operator. Employee Net Promoter score tracks employees' overall score to this question - On a scale from 0-10, how likely are you to recommend working at Southwest Airlines to a friend?. After today's prepared remarks, there will be an opportunity to ask questions. I'm just trying to level set where we're at in terms of all that. We will participate with enthusiasm on that and do our part to make this even safer. So from a passenger perspective, or let's say, a new passenger. And so, when you look at the stronger demand kind of 45 days and out, there's more volume there. We're -- so again, first of all, the cost pressures are not unique to Southwest. DALLAS, Feb. 6, 2020 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) announced yesterday it will share $667 million with its Employees through its Southwest plans to hire 8,000 workers this year after hiring more than 5,000 at the end of 2020. It's just as an example that we periodically -- we regularly study and survey our customers to understand what's important to them. Helane Becker -- Cowen and Company -- Analyst. Southwest Airlines will share $230 million with its employees after pulling in a $977 million profit for 2021, bringing back a perk that disappeared in 2020 due to steep losses from the COVID-19 pandemic. Duane, I think the other thing that's helpful, too, is we've been pretty forthcoming that we're -- especially on the hiring front, we're hiring ahead to prepare for growth. Thanks. Obviously, we had challenging comparisons here in the second quarter given breakage last year. We continue to expect a modest $85 million in scheduled debt repayments for full year 2023, including roughly $10 million in scheduled debt repayments here in second quarter. Everyone has a voice, and the element of respect is unconditionally present at all times. Employees as expenses vs. employees as assets; Compensation below market, above market, or competitive; Spontaneous training and development or planned training and development; Specific David Vernon -- AllianceBernstein -- Analyst. Cost basis and return based on previous market day close. I'm just very proud of the team. And as a reminder, we had two competing storylines in first quarter that played out as we anticipated. United Airlines employees rated their Recommend to a friend 2% higher than Southwest Airlines employees rated theirs. The outcomes of this formula are shown in the companys outstanding business statistics, which include: 4% voluntary turnover 44 consecutive years of profitability #1 lowest number of customer complaints But the virus caused Southwests flight capacity to drop 16% last year, compared with 2019, and its revenues took an even bigger hit, down about 30%. Thanks, Duane. Yes. So, we have I would assert the highest-quality economy product. I guess, how has your experience been dealing with Boeing on this one? I mean, there's real inflation out there. We need to execute. That's very helpful. And so, there has -- over the last few days, there has been a spike in cancellations from the industry and from ourselves and delays in Las Vegas. Yes, again, this is the latest. And we'll take our last question from David Slotnick from TPG. So, understand the question. Southwest has been profitable for 44 years in a row. All in all, the overall domestic revenue environment remains strong, and our initiatives are performing in line with our expectations. And like Bob said, those scores have improved dramatically over the first -- or significantly over the first -- the course of the first quarter here. Southwest Airlines (LUV 1.37%) Q1 2023 Earnings Call Apr 27, 2023, 12:30 p.m. Latest Stock Market News Today: Facebook shares jump, 1Q So, is the takeaway that the book away has fully ceased and the brand is intact? We got 50% of June booked at this point. We are focused on delivering a wonderful product with great hospitalities -- hospitality from our employees. On the call with me today, we have our president and CEO, Bob Jordan; executive vice president and CFO, Tammy Romo; executive vice president and chief commercial officer, Ryan Green; and chief operating officer, Andrew Watterson. Ryan Green -- Executive Vice President, Chief Commercial Officer. In closing, I'm just so very proud of our people. So, those brand strengths have not changed. And so, that will be playing out here as we kind of move forward. If there's a little bit of a sign of demand with this, wouldn't we want to back away from that restoration plan a little bit? He is a University of Washington graduate. In the days following each event, we had no material hangover in our aircraft or crew networks. Profit-sharing is one of the biggest financial perks for employees at major airlines, and Southwest Airlines was able to give away a record $677 million in 2019 before the COVID-19 pandemic swept in during 2020 and wiped out any chance of a profit. Thank you, Andrew. And anything you can share there that maybe some destinations that you're like, well, why are the bookings so strong there? For several decades, Southwest Airlines was the envy of the airline industry because of multiple competitive advantages: a low-cost structure that stayed low due to Thank you. Cons 100% remote is convenient but makes collaborative work challenging to align. Wir laden Sie ein, Ihre Ansprche in unserem Haus mit drei(miteinander kombinierbaren) Szenerien vielseitig auszudrcken:Klassisch, Modern und Zeremoniell. Others offer a basic economy or other type of product, which is stripped down penalizing, whereas you fly us, you're flying a regular economy that's got ample legroom. Most Popular Benefits at Southwest Airlines Co Benefit / Perk Employees Reporting 401 (k) 200 Paid Holidays / Vacation 161 Life Insurance/Disability 113 Paid David, I'm not sure that I caught all of the question there, you were breaking up a bit. I think as Ryan said, I think that's the reason you've seen us restore or nearly restore ourselves in March here, the pre-pandemic first airline to do that. And you've seen us -- you have seen us add things now like power and then the larger bins and enhancing the Wi-Fi, and that comes from our customers telling us that's what they want. So, as Bob covered very thoroughly, the -- what we need to focus on now is solidifying our fleet plan and our capacity plan for next year. I'm wondering if you could talk in relation to how that's affecting airfares. 8 km sdstlichvon Krems und ca. With its revenue decline far outpacing its cost cuts, Southwest Airlines posted an operating loss of nearly $2.2 billion. And so, all signs look really good and strong for the second quarter. That is a poor customer experience. And so, it should contribute at a much faster rate. In closing, I want to mention that we have watched our brand metrics very closely since the disruption and our scores have improved significantly throughout the first quarter. And then, second, we want -- again, as Andrew said, we want orderly growth. We saw the reverse over the second half of the quarter and witnessed strong revenue trends throughout March. We just need to continue to execute and be the Southwest Airlines that customers have grown to know and love. So about 20% of the time when the winds are such that you provide primarily on those two runways, one of them being out will reduce our -- the throughput rate, which means you'll have delays and cancellations to cover that. As part of an annual tradition, Southwest is sharing that profit with employees. Yes. And with that, I'll turn it over to Andrew. As an example, on the aircraft that we have where we have improved and enhanced Wi-Fi, the investments are paying off. I feel valuable as an employee. Southwest Airlines' (NYSE:LUV Yes. That wraps up the analyst portion of our call today, and I will turn it back over to the operator. WebSouthwest offers an excellent benefits package, including a generous dollar-for-dollar Company match in the 401 (k) Plan, subject to vesting requirements and certain That fair has a bundle of benefits that customers are choosing to pay for. But to be very clear, we are currently planning our published schedules around the delivery of 70 -8 aircraft this year, and we intend to solidify our order book with Boeing soon. How much each exact employee gets in profit-sharing is based on their union contracts and how long theyve worked with the company. September and October will be modest revisions to what was already published. Both airlines reported year-end results earlier this month. Hey, good afternoon, guys. And as we get further in our planning, obviously, we'll provide more guidance there. Southwest Airlines Company Southwest Airlines had a particularly rough 2019, but it still managed to turn a profit. As part of an annual tradition, Southwest is sharing that profit with employees. The airline announced Thursday its giving 60,000 employees a $667 million profit-sharing bonus. We have work to do with Boeing, obviously. Thanks for the clarification, Andrew. Now, we're going to go back and redevelop November-December with a lower aircraft count to reflect business. Glassdoor provides our best prediction for total pay in today's job market, So, it will be a drag through August if you have more north winds than expected, but it's a normal process for airports to have to rehabilitate their runways and taxiways. And in the context of like a high single-digit growth rate, is the assumption going forward that a lot of these transitory costs are actually going to allow you to have CASM-X decline next year? Any thoughts on why we're seeing that trend show? So, I just -- I wish I could give you a -- yes, something to hang on to, but we don't have one, so. But yes, I think you could expect that for the most part, we're pretty clean at this point. WebFurther, Southwest remunerates its employees better than others in the industry and takes pride in the low employee turnover it records. And that's the intent is to just take the plan, reflow and be much more predictable and less choppy year-to-year-to-year. Airline Manager 4 App 2023 To invest in our history and modern-day marvels To say that I put time in while I had time to give And some how this works real well with my twice times academy and three times university Business clerical, to then certified nursing assistant to phlebotomy,electronic program writter, to air plane hanger and plane design tester, weber state flight university.