{
  "docId": "019dd923-622b-71dc-a6dc-3b6d17d91123",
  "docSlug": "7848c04aef2c",
  "documentTitle": "Southwest Airlines (LUV)",
  "authorId": "14_Icahn",
  "authorName": "John Pike and Bobby Xu",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2024-06-10 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 29,
  "pageCount": 78,
  "prevPage": 28,
  "nextPage": 30,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 11,
  "notes": "The slide uses a red bar for 'Today' to emphasize the critical valuation gap.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "bar_chart_vertical",
    "callout_box",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6dc-3b6d17d91123/29",
  "deckHref": "/decks/019dd923-622b-71dc-a6dc-3b6d17d91123",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-3b6d17d91123.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-3b6d17d91123#slide-29",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.27,
        "x": 0.65,
        "y": 0.43
      },
      "kind": "callout",
      "text": "The market value of Southwest's aircraft ($17B)(3) exceeds the TEV of Southwest, implying no value from operating the largest domestic airline beyond the value of the aircraft",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e87767a5-3d8b-4617-87ab-c71c407051e4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "The market value of Southwest’s aircraft ($17B) exceeds the TEV of Southwest, implying no value from operating the largest domestic airline beyond the value of the aircraft",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0f1e-7015-902c-0f301ca84bab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.84,
        "x": 0.08,
        "y": 0.25
      },
      "kind": "chart",
      "text": "Southwest Year-end Enterprise Value Since 2014",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fb3b48a5-4477-4504-9fa1-b83d015c9085",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Enterprise Value: $16bn",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0f1e-7015-902c-15ea38601496",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.84,
        "x": 0.08,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Southwest's enterprise value has declined 44% since 2019, reflecting a substantial diminution in investors' views of Southwest's future earnings power. In contrast, peer enterprise values are only 5% below 2019 levels on average(1)",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7d535367-e3f0-4192-a095-67a07618581b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.84,
        "x": 0.08,
        "y": 0.78
      },
      "kind": "quote",
      "text": "Presently, investors are not convinced that the company can return to its former glory based on how the stock has been trading of late.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b24628fe-4d7e-4240-85e4-851779018a45",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "Presently, investors are not convinced that the company can return to its former glory based on how the stock has been trading of late. — Deutsche Bank, April 2024",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0f1e-7015-902c-13a33be0f865",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.84,
        "x": 0.08,
        "y": 0.89
      },
      "kind": "source-note",
      "text": "Source: Company filings, peer company filings, Bloomberg as of 6/7/2024, Cirium as of 6/7/2024, equity research. Note: Emphasis is added to the quote. (1) Delta, American and United enterprise values are 4%, 1% and 11% below 2019 levels, respectively. (2) Reflects Cirium's estimated market value of Southwest's fleet.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d2c26253-1309-4466-8561-cc69eada5c86",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.84,
        "x": 0.08,
        "y": 0.1
      },
      "kind": "title",
      "text": "Extraordinary Decline in Southwest's Value",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "43814729-99ac-49a4-89a4-d3e184083c09",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "cb3cad64-49c5-49e7-8913-5cda88839ee5",
      "evidence": "Compares Southwest's valuation decline against peer average performance.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 40,
      "from": 21,
      "beatId": "72943afb-ed0b-4cf8-a4b3-490a224aa9cc",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The document emphasizes the consequences of inaction and the need for change",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 30,
      "from": 21,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "5be361fd-e3ed-4a82-9fb2-1cea4f443b1c",
      "evidence": "The document presents data on Southwest's underperformance and the consequences of inaction",
      "position": 0,
      "objective": "The cost of inaction is highlighted through Southwest's underperformance",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}