Yes. David, I'm not sure that I caught all of the question there, you were breaking up a bit. Thank you, operator, and welcome, everyone, to our first quarter 2023 conference call. So, they're more than restored. We have improved Wi-Fi. Jamie Baker -- JPMorgan Chase and Company -- Analyst. So there's no real huge surprises in the data when you kind of double-click as to where customers want to go. And all of -- I think it's been widely you talked about throughout earnings season here that the booking curve is moving out a bit and we're more normalizing, more or less normalizing to pre-pandemic trends. Southwest Airlines unveiled its newest special livery airplane Friday during an event at Long Beach Airport (LGB), celebrating the fourth anniversary of its first commercial flight to Hawaii. I believe it was at investor day where you guys said that you've added like more than 8,000 new corporate accounts last year. Looking ahead, we currently estimate our second quarter CASM-X to increase in the 5% to 8% range year over year, largely driven by general inflationary cost pressures that we expect to persist and are not unique to Southwest. vom Stadtzentrum) und 8 km sudstlich von Krems (10 Min. And so, I think both of those things are at play here. We want an orderly growth. Southwest offers staff extra pay, frequent flyer miles to avoid Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Beginning with fuels. So, a lot of other positives that will come on here as you move forward across the year. And with that, I will turn it over to Tammy. But as you're looking at summer travel bookings so far, do you see anything -- any trends in the bookings that might indicate that people are choosing different destinations since ticket prices are high, hotel prices are high, car rentals and Airbnbs are high. It's all about providing terrific service and hospitality. While we don't like those delays, this represents an admiral recovery by our people, all things considered. So, they will shut those down for periods of time. And Andrew, I would say -- Ryan, I would say '25 growth as well. We don't want 152 aircraft next year. Invest better with The Motley Fool. I forgot. 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. We're also participating in the FAA's forums. We win time and time again. We don't want interruptions to planned delivery schedules, and we'll continue to work with Boeing on that as well. We just want that growth to be measured and orderly. David Vernon -- AllianceBernstein -- Analyst. I didn't really understand it. 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. This is evidence that our processes for irregular operations are solid and working as designed. Learn more about each company and apply to jobs near you. Thanks so much for your time today. And the next question will come from Savi Syth from Raymond James. We began building our 2025 portfolio and are about 10% hedged. The next question is from Holden Wilen from Dallas Business Journal. And so, those will come -- comes on line at a significantly lower cost profile that is -- that development of additional operating leverage really is the focus for '24. So, we have aircraft effectively that we are not producing capacity out of today because the constraint is just pilots. 10 stocks we like better thanSouthwest AirlinesWhen our analyst team hasa stock tip, it can pay to listen. [Operator instructions] And the first question will come from Duane Pfennigwerth from Evercore ISI. So -- and it's been managing things for a while. As Ryan pointed out, we had record additions in terms of rapid reward members in the first quarter. And so, what that means is you sell, sell, sell and then you republish and you consolidate the customer has already purchased on to a fewer number of flights, which kind of artificially pushes up your load factor. And so, the last thing we want to do as everyone do kind of go off in their own direction. 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 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. I'm not asking for a number, more directionally kind of how you're thinking about it. Our first quarter jet fuel price was $3.19 per gallon, which was on the high end of our guidance range. And what are the circumstances that would cause you to raise your CASM expectations again this year? So, we've incorporated that best we can. Average Southwest Airlines So moving to something that is much more predictable. Employee profit-sharing returns as Southwest Airlines netted $977 million for 2021 The company also boosted base pay from $15 to $17 an hour as it looks to OK. That's helpful. Is that something that you focus on? Please go ahead. I'm also proud to announce that we have completed the selection and rollout of our new revenue management system, which is the Amadeus Network Revenue Management product. Yes, Scott. Thank you. Conor Cunningham -- Melius Research -- Analyst. 2 in the first quarter and had completion factors that were up two points year over year, on-time performance that I think was up three points quarter over quarter. By comparing employers on employee ratings, salaries, reviews, pros/cons, job openings and more, you'll feel one step ahead of the rest. That means not changing the flight that we've already sold them. Southwest Airlines (LUV) Q1 2023 Earnings Call Transcript Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. Any thoughts on why we're seeing that trend show? I'm wondering, we talked a little bit -- a lot about growth in demand over this call. We're going the other way. That is a poor customer experience. We are encouraged about the future opportunity for incremental revenue, which really starts in earnest in third quarter as the new Amadeus product is now fully implemented and is currently managing all future bookings and departure dates. But most of what you've seen are revisions. Intern (Former Employee) - Dallas, TX - February 21, 2023. But no, there's no evidence at this point that the book away is continuing. The outcome is a reduction to our 2023 capacity and capex outlook, and we are currently reevaluating our hiring needs relative to our most recent expectation to hire more than 7,000 net new employees this year. So like Bob said, we have work to do. We are carefully managing the business in the near term, and we continue to believe in our long-term strategy and set of initiatives. Yes. And just -- but just at the end of the day is -- I mean, we're going to work on a plan that allows us to achieve our objectives, our financial objectives -- and our financial objectives as well. 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. 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?. Earlier this month, Atlanta-based Delta Air Lines decided to give a special $1,250 per-employee contribution to its profit-sharing pot even though the company had a $3.4 billion operating loss. And right now, that is pilot hiring. I mean, if the demand isn't there and load factors under pressure, why wouldn't we rethink that a little bit, especially if we're constrained in getting resources and having difficulty kind of getting the operation up to that level? Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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 were No. And so, that, in addition to the carryover, that's something that's yet to be determined, but we -- it involves negotiating with Boeing and how the aircraft would flow in. I know you guys are saying as our other airlines are not seeing any signs of demand weakness. 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 those numbers are really strong. It's a priceless feeling! We now estimate our full year 2023 fuel price to be in the $2.60 to $2.70 per gallon range, down a nickel from our previous guidance and still including $0.10 of hedging gains. 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. It seems kind of -- it's not the first time you've dealt with an issue like this and just curious to know with Boeing if their communication, their ability to deliver, if those things have improved. Just on costs, I totally appreciate you have a business to run and there's moving pieces. A lot of -- a lot of carriers are dealing with this, and that was going to true up roughly at the end of the year. Our legacy system, the one that we just moved away from was a load factor by a system admittedly. ET. And what RASM outcome are you managing in the back half of the year too? Ryan, can you talk a little bit about what kind of load factors embedded in the 2Q guide? We want to pay our people great, but there is real wage and supply chain and other inflation year over year, first quarter '22 to first quarter '23. Again, we want to grow. OK. Dave, I'll assume, you're done there. Its adjusted net loss came to $1.5 billion, or $2.67 per share. 1 airline in Kansas City, growing from six flights in 1982 to 75 flights today. At Southwest Airlines, employees working in So somebody that's just starting to fly, they've reached that economic level or they're just entering the workforce, whatever. In 2021, Southwest That is tremendous progress, and it feels like we're very close to full corporate revenue recovery at Southwest. United Airlines employees rated their Recommend to a friend 2% higher than Southwest Airlines employees rated theirs. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Southwest Airlineswasn't one of them! Despite the near-term cost pressures, we have not lost focus on our goal to effectively manage the real inflationary cost increases we are seeing and equally as important, maintain our competitive cost position. Arlington taco shops mural of infamous Texas Rangers fight can stay, for now, Hostile takeover: West Dallas homeowners battle new developments, rising taxes, Stars to face Kraken as Seattle defeats Avalanche, eliminates defending Stanley Cup champs, Mass shooting in Cleveland, Texas; manhunt underway: What we know, How a man is working to preserve the West Dallas neighborhood named after his grandparents, Cowboys 2023 undrafted free agent tracker: See which players Dallas added after NFL draft, Willie Nelson makes music with his friends at 90th birthday concert, 2023 NFL draft grades: See what national experts thought of Cowboys selections, Stanley Cup playoff central: Stars-Kraken schedule, stories Dallas fans need to know. That wraps up the analyst portion of our call today, and I will turn it back over to the operator. I think it's really what you would expect in terms of where customers want to go this summer. We committed to stop doing that about a year ago, and so we have not done that. We're by far the most customer-friendly and business-friendly airline in terms of great service at a great price with the most rewarding frequent flyer program. Southwest Airlines Salaries (April 2023) - Zippia So, as we make improvements and enhancements to the product and as we continue to execute and operate reliably, those scores should come up -- continue to come up over time. Thank you. And a lot of that became evident as we worked our way through the first quarter here and we had to adjust our revenue management techniques to kind of adapt for that. And I think that over time, we've actually got a lot of opportunity in the vacation space relative to where our network sits and kind of how we participate in that market. I won't go through all of our key findings and work to shore up our winter preparedness because we've done that a few times now, I am very proud of our people for the operation they have delivered this year and for the relentless focus on executing our plan to fortify the operation in preparation for winter 2023. It's hard to know on the inflation front. WebNo. Despite the lower capacity growth, nearly all of the capacity growth is still going back into key Southwest markets and adding market depth. facebook.com/hochzeitsschlosshollenburg/. So, our work with -- the cooperation with Boeing has been really good. How much each exact employee gets in profit-sharing is based on their union contracts and how long theyve worked with the company. Thanks. By third quarter, we expect all of our existing aircraft to be flying with upgraded Wi-Fi and Anuvu hardware, offering increased speed and reliability. So, Andrew, I want to follow up on the capacity cuts. And with that, I'll turn it over to Andrew. I feel valuable as an employee. In the days following each event, we had no material hangover in our aircraft or crew networks. They want to -- it's not as strong as '22 when you really saw this "revenge travel" come back especially on the leisure side. 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? A lot of that this year coming in '24, I think this further revision with Boeing from 90 down to 70 is going to help us go back through, look at our hiring plans, moderate our hiring plans at this point between the 46 aircraft that were undelivered from last year, now you got an additional 20, then 66. Is there less growth because we're just going to continue this? Average Southwest Airlines Co Salary | PayScale Employee profit-sharing returns as Southwest Airlines netted And with that, I will turn it over to Ryan. What's down is the frequency of those travelers. Thank you, Tammy. As we get our network completely restored, you can fill those extra seats with extra connections, but to do the extra connections, you need that restoration. Managed business revenues also improved significantly throughout the quarter and by March were nearly restored to March 2019 levels, just shy of 100%. But so far, we've seen no impact on air travel, the revenue looks good here for the second quarter and what we can see, it's probably tough to speculate beyond second quarter and into the second half of the year. We continue to work hard on labor agreements for our people and we continue to make progress. That level of growth and hiring in advance for the level of deliveries we had originally planned, it just adds cost because you're constantly hiring ahead for anticipation of what's coming in the next year. Is that based on the current environment and outlook that you feel the need to scale back, or is there something else? So just great progress on that front. 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. Southwest Airlines ranked world's No. 1 company for HR And therefore, any impact on -- the one point impact on CASM for the year.