Southwest Air’s Skeptics Are ‘Missing the Point,’ CEO Says
- Carrier disputes Wall Street claims it’s no longer low cost
- CEO says company planning includes coronavirus uncertainty
A Southwest Airlines plane at Albuquerque International Sunport (ABQ) in Albuquerque, New Mexico, U.S.
Photographer: Angus Mordant/BloombergSouthwest Airlines Co. executives are pushing back against a rising chorus of analysts who say the company’s days as the airline industry’s disruptive force are over, reined in by higher wages and tougher operational challenges.
The carrier known for its no-frills aesthetic and competitive prices is under pressure because its model is being put to the test, 50 years after its first commercial flight. Southwest increased starting pay to $15 an hour in August, and may have to go higher in some parts of the country to meet goals to hire thousands of workers, Chief Executive Officer Gary Kelly and his executive team said in an interview Friday.