Southwest CEO: Planning Slower Growth in 2017

The transcript discusses the company's quarterly performance, highlighting a solid third quarter despite a technology outage. It outlines growth strategies, focusing on slowing growth and managing market capacity. Revenue management is emphasized, with strategies to maintain low fares and manage routes. Labor cost negotiations are ongoing, with tentative agreements in place, impacting future growth and profit margins.

What was one of the challenges faced by the company in the third quarter?

• A new competitor entering the market

• An increase in passenger demand

• A technology outage

• A decrease in fuel prices

What is the company's growth strategy for the next year?

• Expand into new international markets

• Increase growth to match competitors

• Maintain current growth levels

• Slow growth to about 3.5% total

How does the company plan to manage its route network?

• By adding more new markets

• By cutting underperforming routes

• By increasing fares across all routes

• By reducing the number of flights

What is one of the main reasons for the company's rising unit costs?

• Higher aircraft maintenance costs

• Increased marketing expenses

• Rising energy prices

• Decreasing passenger numbers

What is the status of the company's labor agreements?

• All agreements have been finalized

• Tentative agreements with all work groups except mechanics

• No agreements have been reached

• Agreements are only with the pilots

What is the company's strategy to offset rising labor rates?

• Cut employee benefits

• Reduce investment in the business

• Increase ticket prices significantly

• Improve airline efficiency

What is the expected wage increase for pilots according to the tentative agreement?

• 20%

• 30%

• 35%

• 25%