Why so much cash?
 

In the analysis I've seen Southwest has the best cash to cash burn ratio of any carrier, and it's not even close. My question is; was this because management actually planned for periodic downturns or because the 737 max didn't come and all that cash was going to buy those and bring them online?

It is there so we are the only airline that can play offensive while everyone else is playing defense. Basically the strategy management is going for right now is to try and capture more market share while AA, DL and UA are all retreating to their fortress hubs.

I'm too lazy to look this up, but I think it's a recent contingency stockpiling and fresh credit. Hopefully there is signs of life soon. The news from UA is just heartbreaking.

It's a little bit of everything. We went into the crisis with close to $4B (i believe) cash in the bank in large part due to not taking delivery of any Max and not making those payments. Blessing in disguise! Before the CARES act was finalized we started exercising lines of credit, then took the grant money, and recently issued a stock grant to raise more cash.

Why? Cash is king when everything is on sale!

You are delusional if you believe that!

Gary Kelly just said the exact opposite...he said SW will be definitely smaller and layoffs are not off the table.

https://www.cbsnews.com/live/

Says the 320 FO

Says SW’s CEO! SW is a real airline now with real airline problems! This time there is a total lack of demand with a global overage of supply!

That other link was bad... Here is the interview.

https://www.cbsnews.com/news/transcr...on-may-3-2020/

This is actually what he said from the transcript:

“KELLY: Well, you know, I think you summarized it well with your- with your comments. The- the planes are virtually empty, and we've got- at Southwest alone we've got close to 400 airplanes that are parked. The- the demand is just not there. So obviously, if things don't improve, we have to downsize. We've never had a furlough in our history. We've never had a pay cut in our history. And I'm extraordinarily proud of that. And we certainly don't want to break that record. What I promised our people is I don't know what the future holds, but I do know that we're very well prepared, and the very last thing that we'll do--is have an involuntary furlough.”

Im curious how long you have been at Delta?

SWA is going to beat the BIG 3 to a pulp.