Southwest CEO Kelly Says Growth Slower on Fuel Costs

The transcript discusses the company's slower growth due to higher fuel prices and an accident in the second quarter. Despite these challenges, the company plans to expand into Hawaii and maintain low fares. Inspections have been completed, and safety protocols are in place. The company aims for positive unit revenue and is leveraging corporate tax benefits to offset fuel costs. Consumer demand remains strong, and the company is focused on maintaining its low-cost leadership.

What was one of the main reasons for the company's slower growth this year?

• Decreased demand

• Higher fuel prices

• Supply chain issues

• Increased competition

What action has the company taken regarding inspections?

• Outsourced them to a third party

• Completed them and instituted a more frequent protocol

• Reduced the frequency of inspections

• Delayed them until next year

How has the company managed to offset higher fuel prices?

• By reducing staff

• Through corporate tax benefits

• By increasing ticket prices

• By cutting down on flights

What is the company's strategy regarding fares?

• Offer discounts only during off-peak seasons

• Increase fares to match competitors

• Maintain low fares and avoid additional fees

• Introduce new fees for baggage

What is the company's main focus for expansion in the next six months?

• Europe

• Asia

• Hawaii

• South America

How has the company shared tax savings with customers?

• By offering free meals

• By reducing fares

• By providing free upgrades

• By increasing flight frequency

What is the company's outlook on business and consumer travel demand?

• Uncertain and fluctuating

• Stable but not growing

• Weak and declining

• Strong and increasing