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  "documentTitle": "Southwest Airlines (LUV)",
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  "authorName": "John Pike and Bobby Xu",
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  "presentationDate": "2024-06-10 00:00:00",
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  "notes": "Uses a combination of quantitative performance data and qualitative external criticism to frame the company's cost management as a failure.",
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      "kind": "callout",
      "text": "And guided to increase further by an outsized 7-8% YoY in 2024",
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      "text": "Change in Unit Costs vs. Peers (2018 – 2023)",
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      "text": "Change in Unit Costs: 30%",
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      "text": "Southwest has delivered peer-worst unit cost performance over the past five years. Poor cost control undermines Southwest’s competitive positioning as a low-cost carrier",
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      "text": "Southwest is tied (with United) for the most growth, but its unit cost inflation is still worse than all others.",
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      "text": "Southwest has lost the passion for low-cost, low-fare air travel.",
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      "text": "Costs are the real glaring issue at Southwest as they over-hired (23% more headcount vs. '19) during the recovery phase and have seen productivity decline",
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      "text": "When [CEO Bob Jordan] came to the SWAPA Board of Directors meeting, he said specifically that operations wasn't his strong suit.",
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      "text": "Southwest has lost the passion for low-cost, low-fare air travel. — Ryanair CEO Michael O'Leary, March 2024; Costs are the real glaring issue at Southwest as they over-hired (23% more headcount vs. '19) during the recovery phase and have seen productivity decline (capacity is up 13.8% vs. '19)... — Melius, January 2024; Southwest is tied (with United) for the most growth, but its unit cost inflation is still worse than all others. — J.P. Morgan, July 2023; When [CEO Bob Jordan] came to the SWAPA Board of Directors meeting, he said specifically that operations wasn't his strong suit. — SWAPA President Casey Murray, August 2022",
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      "text": "Source: Company filings, peer company filings, equity research, media reports, SWAPA. Note: Emphasis is added to all quotes.",
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      "text": "Bottom-tier Unit Cost Performance",
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