2024-07-25 14:56:09 ET
Southwest Airlines Co. (LUV)
Q2 2024 Earnings Conference Call
July 25, 2024 12:30 PM ET
Company Participants
Julia Landrum - Vice President, Investor Relations
Bob Jordan - President & Chief Executive Officer
Andrew Watterson - Chief Operating Officer
Tammy Romo - Executive Vice President & Chief Financial Officer
Ryan Green - EVP, Commercial Transformation
Whitney Eichinger - Senior Vice President & Chief Communications Officer
Conference Call Participants
Brandon Oglenski - Barclays
Jamie Baker - JPMorgan
Savi Syth - Raymond James
Conor Cunningham - Milius Research
Mike Linenberg - Deutsche Bank
Duane Pfennigwerth - Evercore ISI
Scott Group - Wolfe Research
Sheila Kahyaoglu - Jefferies
Alexandra Skores - The Dallas Morning News
Rajesh Singh - Reuters
David Koenig - The Associated Press
Lori Aratani - The Washington Post
Alison Sider - The Wall Street Journal
Mary Schlangenstein - Bloomberg News
Presentation
Operator
Hello, everyone, and welcome to the Southwest Airlines Second Quarter 2024 Conference Call. I am Gary, and I'll be moderating today's call, which is being recorded. A replay will be available on southwest.com in the Investor Relations section. After today’s remarks, there is an opportunity to ask questions. [Operator Instructions]
Now, Julia Landrum, Vice President of Investor Relations, will begin the discussion. Please go ahead, Julia.
Julia Landrum
Thank you so much. Hello, everyone, and welcome to our second quarter 2024 earnings call. I am joined today by our President and CEO, Bob Jordan; Chief Operating Officer; Andrew Watterson; and Executive Vice President and CFO, Tammy Romo.
Bob will get us started with an overview of the company's performance and strategy and will also provide color on the strategic initiatives announced this morning. Andrew will provide an update on the revenue and Tammy will cover our costs and balance sheet. Ryan Green, EVP of Commercial Transformation is also in the room with us today, as well as other executives to support Q&A.
A quick reminder that we will make forward-looking statements, which are based on our current expectations of future performance, and actual results could differ materially from expectations. Also we will reference our non-GAAP results, which exclude special items that are called out and reconciled to GAAP results on our earnings press release. Our press release with second quarter 2024 results and a separate release announcing select strategic initiatives were both issued this morning and are available on our Investor Relations website.
And with that, I'm pleased to turn the call over to you, Bob.
Bob Jordan
Thank you, Julie, and thanks, everyone, for joining us this morning. We have a lot to cover today, so let's jump right in. In my comments today, I will touch briefly on our results for the quarter and then provide detail on the plans we announced earlier this morning to implement meaningful changes to our business and better position Southwest Airlines to produce higher returns in a more competitive higher cost environment.
As Julie mentioned, Andrew will provide details on our revenue performance, including the work underway to calibrate our revenue management system and processes, and Tammy will discuss our cost, CapEx and balance sheet.
Starting with our overall results, they are not where we need them to be, and they are not reflective of what we are capable of delivering. We will cover where we fell short as well as our action plan in detail later on the call, but I'll hit on a few highlights first.
Our frontline employees executed very well as we continue to improve in nearly every operating and customer metric. Once again, we ran a high-quality operation with a completion factor of 99.5% despite challenging weather. This was further evidenced by our performance following Hurricane Beryl earlier this month. We experienced an 8% cancel rate on July 8th as the store moved through the Houston area but had only a 0.3% cancel rate the following day as we recovered quickly with almost no operational hangover from the prior day. I am very proud of our team. And following the global technology outages, we were able to recover very quickly and experienced a near zero cancel rate. ...
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Southwest Airlines Co. (LUV) Q2 2024 Earnings Call Transcript