Southwest Air Says It’ll ‘Do Well’ Even If Corporate Travel Remains Stunted

(Bloomberg) -- Southwest Airlines Co. Chief Executive Officer Gary Kelly says corporate travel ultimately may settle to a level that is about 20% below what it was in 2019 as the pandemic eases, but that his carrier will “do very well” under those circumstances.

• Business travel remains down 65% to 70% from pre-pandemic levels
• Southwest already has efforts underway to win a larger share of a possibly smaller business travel market, Kelly tells North Dallas Chamber of Commerce on Wednesday
• Kelly says all U.S. carriers are struggling to hire amid a wider labor shortage that has heightened competition for entry-level workers
  • Some applicants accept jobs and don’t show up, a first in Southwest’s experience
  • Work habits of existing employees also have changed, with more seeking to continue working from home or have other flexibility
• Southwest is focused on operations “to the exclusion of all other priorities” headed into Thanksgiving and Christmas holidays, flying a “more conservative” schedule to match available staffing; Kelly says the airline is prepared

©2021 Bloomberg L.P.