We also raised cash of $10.9 billion, net of repayments and excluding Payroll Support Program (PSP) proceeds, and ended 2020 with liquidity of $14.3 billion and approximately $12 billion in unencumbered assets 4. I sincerely appreciate the 15,000 Southwest Family Members who participated in those crucial programs to reduce our annual 2020 salaries, wages, and benefits expense by approximately $565 million. We implemented voluntary separation and extended leave programs to better align staffing levels and overhead costs to reduced flight schedules. Annual 2020 capacity decreased approximately 34 percent, year-over-year, and we reduced annual 2020 cash outlays by approximately $8 billion, compared with original plans. We took swift action to address the unprecedented decline in passengers and revenue by significantly reducing available seat miles (ASMs, or capacity), costs, and cash spending. The situation escalated dramatically, and by mid-March 2020, trip cancellations began to exceed new bookings. In late February 2020, we began to experience a precipitous drop in passenger demand and bookings due to the pandemic. "We came into the year well-prepared with significant financial strength and started the year strong with an outstanding operational performance and solid net income growth, year-over-year, in January and February 2020, combined. airline in the Wall Street Journal's annual ranking for 2020, which ranks airlines on key operational performance metrics. Their hard work and adaptability last year did not go unnoticed, as Southwest was just named the #1 U.S. I am forever grateful for the heroic efforts and results by our People in the most challenging year since we began flying in 1971. airline industry's best Customer Service 3, as well as a superb operational performance including exceptional ontime performance and baggage handling. On top of these notable accomplishments, our Employees delivered the U.S. They adjusted our flight schedules numerous times implemented new health and safety protocols for Employees and Customers and developed and deployed remote work capabilities for back-office Employees and Call Center Representatives. Nevertheless, our Employees have not wavered rather, they have responded swiftly and with resolve. Travel and tourism industries face an ever-changing environment as the pandemic evolves. Our annual 2020 operating revenues declined approximately 60 percent, year-over-year, and we experienced our largest monthly decline in operating revenues in April 2020, down 92 percent, year-over-year, when the pandemic spread and shelter-in-place orders and similar restrictions were implemented throughout the country. The airline industry was hit especially hard in 2020, and we incurred our first annual net loss since 1972. Kelly, Chairman of the Board and Chief Executive Officer, stated, "The COVID-19 pandemic devastated the world, and our heart goes out to all those affected.
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