SWA Won't Need Furloughs This Year
 

Southwest Airlines won’t need to furlough employees this year after getting nearly 17,000 workers to take early retirement and extended leave, even after reporting a $915 million loss from the COVID-19 pandemic, the company said Thursday.

Dallas-based Southwest, which warned that air travel won’t recover until a COVID-19 vaccine or therapy is developed, said that it will save about $400 million in the fourth quarter from employees opting out of working.

The news came as Southwest reported an 83% drop in revenue for the second quarter and that it burned $23 million a day in costs.

“For those employees that elected these programs, I am immensely grateful for their outstanding support of and service to our great Company,” said CEO Gary Kelly in a statement. “Based on the strong take rates from these voluntary programs, currently, we do not intend to pursue furloughs and layoffs, or pay and benefits cuts, through yearend; however, we will continue to plan for multiple weak scenarios and maintain our preparedness.”

The carrier said it will still likely have to reduce its flight schedule in the fourth quarter and leaders there have warned that demand has weakened recently with a surge in COVID-19 cases in many parts of the U.S.

Southwest Airlines has about 60,000 employees in the U.S., including 10,000 in Dallas where it has its corporate headquarters.

Southwest has not released figures on how many employees will take leave or buyouts, but the TWU 556 union said about 5,400 flight attendants took one of the programs.

Southwest Airlines, like other airlines, is under pressure to reduce payrolls ahead of Oct. 1, when rules from the CARES Act airline stimulus expires that prohibited layoffs, furloughs and pay cuts. Southwest Airlines took about $2.3 billion in grants from the stimulus and another $1 billion in loans.

It would be a major victory if Southwest didn’t have to require furloughs of staff members. Competitors have already started issuing furlough warnings. Fort Worth-based American issued 28,000 notices to mainline and regional airline employees. Chicago-based United has warned 35,000 employees that they may be at risk for furloughs.

TWU 556 President Lyn Montgomery said a large number of flight attendants took leave because they want to see Southwest navigate through the pandemic.

“For some that have taken the extended leave, they don’t want to fly right now or they have an at-risk family member at home,” Montgomery said. “Some really love Southwest Airlines and wanted to take that personal sacrifice.”

Montgomery said all flight attendants and pilots that applied for leave and buyouts will get their request. However, she said the company is also telling employees they may have to bring them back earlier if demand increases in November or December.

- Source Kyle Arnold at AviationPros citing Dallas Morning News

So, we've got until January?


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Come on Debbie. Just smile for once.

:-)


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Made my day ha

Depends on your definition and how long “currently” means. Is it a day, an hour, or a year!


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Hi Zap! How's life in Gloomy Place?

https://media2.giphy.com/media/Ennb4fZczzAS4/giphy.gif
It's hard to always be this optimistic


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Well you could be working at a certain Widget airline who seems to want to furlough regardless of how many take early outs.

Very true, it’s probably a way to reshape their airline like most will that have ventured significantly beyond our borders. At least there is travel going on within our borders. Internationally it’s kaput. Glad y’all sound pretty solid.

Excellent now that the danger is over its time to go buy that Porsche! /sarcasm :)

Seriously though I feel quite relieved at the moment. I think if the vaccines work out then summer bookings will be up next year and there would be little point furloughing beginning next year

Have you considered a Miata?

Now there’s a REAL sports car!

Only with a V8 stuffed in there!!!

Nope. Too unbalanced.

True. But it’s a kind of fun unbalanced.

WN shines again! As with every past downturn, SW circles the wagons to save the flock. Good on you guys! Hopefully they can keep folks off the street till a vaccine appears, which seems likely given the massive coin thrown at it. Not a headline as its potentially good news, but large scale, multi-national, concurrent research, development and production of various promising approaches to vaccination are already in to phase III trials and likely to produce more than one winning candidate by late fall.

Most raced car in the world...

Here you go...

https://www.flyinmiata.com/articles/

Not if you put it in front of the rear axle

Okay, if talking politics is abhorred, surely we can agree that talking miatas is a much greater sin! 😂

Can we get back to politics?

I'm getting a lanyard for my ID that says "I don't talk politics at work."

It's gonna be a long 3 months.


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left side of my headset has a label on it.

'No politics, please'

Really? That's pretty funny. How does it go over?


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If anyone wonders exactly how much SWA wants to avoid furloughs and/or layoffs, VSP and EXTO is apparently a $1.7Bn expense, per mid-year business update from GK. So, that's how much.

Ooo!! I love it when politics come up.

Perfect time to deliver my rehearsed, somewhat passive aggressive speech on why I have neither the time nor interest in the subject.

The reaction is similar to a child being told there will be no Christmas.

I almost feel bad. Almost.

most guys laugh. My politics probably align with, and are even more radically that way, than 90% of the guys on our seniority list. It's just so damn boring talking about things that outside voting every two years we've got zero influence over.

i'd rather talk about cars I can't afford, women the captain can't afford, and the stuff we like to do when we aren't at work.

I second that. But not Miatas.

LMFAO. Brilliant!!!

Oh come on now. The Mazda 100th anniversary edition Miata comes out this fall and it is sweeeeet :D

Sadly rest of year is only 3 months after cares act expires but every bit counts !

That scuttles any Cares act extension and is a saavy but cut throat business move.

that is saying something. No other airlines are willing to do that. WN should be proud. That’s how you measure an airline, not the promise of a quick upgrade or a double breasted blazer.

Unfortunately, the lure of a quick upgrade persuaded many to go a different direction, when SWA was presented as an offer. We're not out of the woods yet, but I'm sure glad SWA called first.

SWA Won't Need Furloughs This Year
 

Before we claim victory, I think we should take a deep breath - be thankful for the 3 month stay of execution - but wait to see if we are able to be equally as fortunate to avoid furloughs in 2021 until the pandemic is behind us.

I'll be first in line to shower accolades on our management team if they're able to pull it off. That would done some Herb level legendary stuff if they are.


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Hang in there Zap! We will get through it.

I mean if they furlough January 2021, they will need ppl back by summer if a vaccine is widely available which all indications are that one will be. Management has shown they will do anything to avoid furloughs, I doubt they would furlough unless it’s for a long time such as 2-3 years

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I already have the paperwork started to rename my kids Gary and Kelly if we're able to make it through this pandemic without me having to go look for work.

Their middle names can be Kool and Aid. (In jest). I understand your enthusiasm!