“We have no intention of seeking permits, layoffs, wage rate cuts or benefit cuts at least until the end of this year,” Southwest CEO Gary Kelly said in a memo obtained by CNN. But Kelly cautioned that “it cannot guarantee that it will never happen, especially during these dark times of pandemic.”
Southwest says 17,000 of its workers have already taken voluntary separation packages and have extended their free time. Still, Kelly said the airline is losing $ 20 million a day.
Kelly described the airline’s efforts to cut costs in the memo. “To deal with the financial crisis, we are fighting to cut spending and raise more cash from multiple sources,” he said, specifying that the company reduced capital projects, shareholder returns and operating costs that represent $ 7 billion. by 2020. The airline also secured $ 3.2 billion in cash under the CARES law, sold common stock to investors for $ 2.2 billion in cash, and loaned $ 12.2 billion from lenders.
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