Southwest Airlines Co. Morgan Stanley's 14th Annual Laguna Conference
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Great. Let us switch back to airlines content now, and very happy to have at Laguna again, Southwest Airlines CFO, Tom Doxey. Tom, welcome to Laguna. Thanks.
Really good to be here.
Absolutely. You guys have been the idiosyncratic story of the industry for the last couple of years now. Obviously, so much going on, A, with macro, B, at Southwest as well. Maybe just start at a high level. How do you spend your time? What's the split between looking internally? What's the split between refreshing the price chart on jet fuel versus other macro stuff?
Yeah. We'll focus on controlling the things that we can control.
Yeah. I think we've done a really good job at that.
You mentioned the initiatives. You look at those initiatives that we've rolled in over the last 18 months or so. We were actually asked this morning in one of the investor meetings, "Okay, well, talk about one of the ones that didn't go like you thought it would.
Sure. Yep. As we went through them, they all came in on time.
Okay. They all have either met or exceeded the financial estimates that we have put out there.
And we've done it also with maintaining the things that have been core to Southwest for 50-plus years now, around hospitality and the culture and the customer centricity. We're seeing record numbers for people coming to us now. Our business revenues, for example, are up 30%.
Yep. And I think that has a lot to do with the product.
The fact that we now have the assigned seat, we have the extra legroom seats, we've got Starlink that's started to roll out.
Right. We'll have probably 300 or so aircraft that'll have Starlink installed by the end of this year, and we're going to continue on as we go through next year.
Right. The product is getting to a point now where I think it's resonating with people that it didn't resonate with before while building on the base.
And so yeah, things have gone really well from an initiative standpoint.
That's great. I'll come back to you in a second on that, but maybe let's hit demand trends first. 2Q earnings, you said that 3Q was roughly 65% booked with yields up 24% year-over-year, versus 13% for 2Q, so clearly a lot of momentum there, with no deceleration in demands or fares. How have those trends evolved since July? And obviously seasonality is a different thing, but how does that compare to what you saw in 2Q?
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