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Southwest CEO Gary Kelly weighs in on company growth and revenue, oils impact on ticket prices and maintaining low airfare.
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Thank you very much and looks on the -- -- -- take a look right now shares of Southwest Airlines.
Record revenue grew up helping to push the airline -- positive second quarter earnings -- -- the stock is down twelve cents right now.
Earlier this morning had a chance to speak with chairman and CEO Gary Kelly about the airline's latest quarter and summer travel the -- We have very strong revenues strong unit revenues nice growth compared to year ago all time record profits so.
Definitely something to -- celebrate.
When the fourth of July is on Wednesday.
It's not the best the strongest travel.
Performance generally.
At least according to history.
And that's probably going to be the case this year here for the month of July but.
Nonetheless we're we're still gonna have a solid July in the bookings for August and September look fine at this point bad person for the very nice.
Business travel performance in the second quarter so hopefully that -- -- or business travel visual -- hold appear in the third quarter as well.
What do you for -- for ticket prices scary because you know the industry overall last year had to raise ticket prices -- did raise ticket prices about a dozen times.
Last few weeks we haven't been saying that.
Do you foresee -- in the next few weeks the ticket prices are again gonna go higher.
-- 4011 was like 2008 when you had soaring fuel cost and in the short run the industry just doesn't have many levers to pull other than reducing flights or trying to increase fares and that was the case for us as well also we had a number fare increases last year to offset higher fuel prices.
At least.
In the second quarter our fuel cost year over year -- steady.
And I'm not gonna say low because -- over -- dollars a barrel limit and Brent crude oil.
Reference points but.
Nonetheless at least we've caught up 200 dollar crude oil and again.
I'm very satisfied with our revenues this level.
And obviously you're hedging strategies span and keep for you one of the things that southwest has not done of the Arab airlines -- really kind of piled on as those fees.
On to their customers a southwest has always been the low cost carrier but argue would you consider.
And -- be adding some more fees to customers.
Like the rest of the industry.
Well no -- -- have to qualify that by saying he's one never says never it's just too.
Two dynamic world that we live in but that we have no plans to change our low fare brand I would start -- that.
And then would add to that that we don't want to nickel and dime our customers we don't we don't offer hidden fees.
We just don't think that's what we stand for so.
With these kinds of results.
We carry more customers in the United States than any other airline.
By far so I think we have a very successful business model we have the best people we have the best service.
-- it's a very profitable business.
Let's talk about the labor situation because your competitors are actually having some difficult times.
With their unions AMR of course going through bankruptcy -- loss of that company but that UAL the publicist authorizing.
A strike what does that mean for southwest.
Well I think it's just a contrast.
This is our 41 year that we have been famous for having a very strong culture itself west.
-- southwest being a great place to work.
Most people assume that were not unionized in fact where the most unionized airline in the United States.
The industry is notorious.
For very poor -- -- labor relations so I think that contrast.
It's certainly true historically and and that's continuing we we continued to enjoy very strong labor relations.
Before let you go one analysts was asking about that does set the 717 aircraft -- to delta that has actually that deal has been struck.
Are you still on track to start delivering three aircraft per month beginning next year.
Oh absolutely.
Will have a year to prepare for that and those deliveries to delta begin in August of 4013.
And wrap up in late 2015 and so while we're.
We got a lot of work to do to make that transition but very confident that our folks -- pulled off.
They are saying -- the 730 sevens are our thanks to Gary Kelly chairman and CEO of Southwest Airlines -- -- -- the.
