Southwest Airlines Company · NYSE:LUV
Southwest Airlines — J.P. Morgan Industrials Conference 2023
11 slides from Southwest Airlines's conference presentation, Mar 14, 2023
Slide 1: J.P. Morgan Industrials Conference
J.P. Morgan Industrials Conference Bob Jordan, President & CEO March 14, 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Page 2 Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based
Slide 3: First quarter 2023 guidance update
Page 3 Guidance metric 1Q 2023 Previous estimation Operating revenues (year-over-year) Up 21% to 23% Up 20% to 24% Available seat miles (ASMs, or capacity) (year-over-year) Up ~10% No change Economic fuel costs per gallon1 $3.10 to $3.20 $3.25 to $3.35 Fuel hedging premium expense per gallon $0.06 N
Slide 4: Full year 2023 guidance update
Page 4 Guidance metric 2023 Previous estimation Aircraft1 833 843 Available seat miles (ASMs, or capacity) (year-over-year) Up 15% to 16% Up 16% to 17% Economic fuel costs per gallon2 $2.65 to $2.75 $2.90 to $3.00 Non-fuel unit costs (CASM-X3) (year-over-year) Down 3.5% to 5.5% Down 6% to 8% Schedul
Slide 5: Tactical action plan in response to operational disruption
Page 5 Tactical action plan in response to operational disruption Based on the review of December’s operational disruption, we are developing a tactical action plan to boost operational resiliency • Increase number of available deicing trucks / ground equipment • Procure additional deicing pads and
Slide 6: Tactical action plan aligns to multi-year operations plan
Page 6 Tactical action plan aligns to multi-year operations plan Our multi-year operations modernization plan—outlined at our December 7th Investor Day—complements the tactical action plan we are pursuing to enhance operational resiliency Aircraft Productivity Operating Leverage Operating Quality Fr
Slide 7: Recent operational performance has been strong
Page 7 Recent operational performance has been strong Operational performance and management of irregular operations was strong before and after the December operational disruptions 1 Delta 80.8% 2 Southwest 79.7% 3 American 78.3% 4 Alaska 77.3% 5 United 76.0% 6 Hawaiian 75.3% 7 Allegiant 72.9% 8 Je
Slide 8: Customer engagement remains strong
Page 8 Customer engagement remains strong In addition to the rebound in bookings and revenue trends in March 2023, we are seeing encouraging momentum in Customer engagement metrics Impacted Customers booked or flown since disruption January through early March 2023 We are pleased with momentum in ou
Slide 9: Business model and network strengths remain intact
Page 9 Business model and network strengths remain intact Our operational disruption review has not revealed structural changes needed to our low-cost business model or our point-to-point network Southwest has the #1 or #2 market share position in 61 domestic cities Southwest #1 in PDEWs Southwest #
Slide 10: Financial goals remain unchanged
Page 10 Financial goals remain unchanged Our annual goals are to generate consistent profitability, grow the route network and revenue, and enhance Shareholder value by generating consistent returns on invested capital in excess of weighted average cost of capital Despite recent headwinds, our 2023
Slide 11: Questions?
Questions? Southweste
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