LUV stock is up, but nowhere near it's contemporaries in the legacies or majors. I would suspect this has a lot to do with the short-sighted money grab tactic of furloughing a small labor group to scare others into accepting concessions. The optics of downsizing don't exactly inspire confidence with shareholders.

SWA's folksy reputation was sacrificed at the alter of profitability. A 10% pay cut, while very meaningful to employees already suffering sizable income losses, wasn't going to make any significant difference to SWA's bottom line, but will definitely carry a cost not seen on an accountant's spreadsheet: morale and recruitment.

SWA's spirit and folksy mojo is a huge attraction to its loyal customer base; once it's people, or 'employees' (cost units?) lose that LUVing feeling, the brand will suffer and cost infinitely more than the 10% it hopes to save.

GK declined $7.5B in low interest loans, presumably because of the restrictions to buybacks and the fact he didn't need it; SWA can continue operate at the current burn rate for 2 years. The cash burn will turn to profit long before furloughs make financial sense. I suspect GK knows this, which implies he's willing to sell the 'family' to maximize profitability. GK squandered a shot at having a 'Herb moment', and looking more like a courageous and caring leader than a callous bean-counter.