Southwest Avoids Involuntary Furloughs in 2020

Southwest has announced that they will avoid a single employee involuntary furlough “in 2020.”

About 16,900 employees, or 27% of the airline’s total workforce, have volunteered for early exits, reduced hours or temporary extended leave, which will relieve the company of about $400 million in salary, wage and benefit expenses during the fourth quarter 2020 alone. Leaves vary in length can some are reported to be almost two years. As a result, the airline says at this time the company is not planning involuntary furloughs.

But, he adds, Southwest remains “laser-focused on returning to break-even cash flow, and we will continue exploring opportunities for further cost efficiencies”.

He describes the airline as “like a patient in intensive care”. And though cost-cutting is an effective way to keep the company afloat, “you can’t cut your way to break even. Ultimately you will need more passengers.”