Good morning, and welcome to the Southwest Airlines Q4 and annual 2021 conference call. My name is Chad, and I will be moderating today's call. This call is being recorded, and a replay will be available on southwest.com in the Investor Relations section. After today's prepared remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. At this time, I'd like to turn the call over to Mr. Ryan Martinez, Vice President of Investor Relations. Please go ahead, sir. Thank you, Chad, and thank you to everyone for joining us today. In just a moment, we will share some brief remarks and then open it up for Q&A. On our call today, we have our Chairman of the Board and CEO, Gary Kelly, Executive Vice President and incoming CEO, Bob Jordan, Executive Vice President and CFO, Tammy Romo, Executive Vice President and Chief Commercial Officer, Andrew Watterson, and President and Chief Operating Officer, Mike Van de Ven. Just a few quick notes. First, we will make forward-looking statements today, which are based on our current expectations of future performance, and our actual results could differ substantially from these expectations. Second, we had a few special items in our Q4 results, which we excluded from our trends and for non-GAAP purposes, and we will reference these non-GAAP results in our remarks today. Please see our press release from this morning and our IR website for more information and our cautionary statement, which covers these topics in more detail. With that, I have the pleasure of turning it over one last time to my friend, Gary Kelly. Thank you, Ryan, and good morning, everybody, and thank you for joining us for the Southwest Airlines Q4 2021 earnings call. First and foremost, I'm delighted to be able to say there were earnings and better than we thought at Investor Day last month. It's obviously a great way to end a tough but much-improved year, a great way to start a new year. We're, of course, fighting our way through the Omicron surge in January, February, and looking forward to a strong rebound in March and thereafter. As always, that's barring any unforeseen events. I expect we'll make great progress in 2022, and we'll enjoy another much-improved year. As we all know too well, it will not be without its challenges, but our people and our leadership are more than up to the task. I'm enormously proud of all of them, and I thank them profusely for their resilience and their perseverance through these myriad of challenges that we've faced the last two years. They've just done a phenomenal job. Southwest is on top because our people deliver great service at low fares, and our business model delivers consistent profits and handsome returns on capital. We've emerged from two years of pandemic with our balance sheet strength and our liquidity intact, and we are perfectly positioned to restore, to expand, and compete aggressively in the coming years. I could not be more enthused and more excited about our future. With that, I'm gonna turn it over to our outstanding CEO in waiting for five more days, Mr. Bob Jordan. Well, thank you, Gary, and hello, everybody. We were last together on December eighth in Investor Day, and a lot has happened since then. Before I get to that, I want to thank my friend, Gary Kelly. Gary is a phenomenal leader, has done so much for Southwest and for me personally. There's just no way to say thank you enough for his 18 years of leadership as our CEO, and I'm thrilled that he will be our Executive Chairman. I'll take over the CEO responsibility for investor meetings going forward. This is Gary's last earnings call. My friend, I just wanna stop and say a huge thank you, and I love you. Well, 2022 has had a challenging start, but that doesn't change our goals for the year. Getting properly staffed, focusing on our people, making meaningful progress, returning to our historic operational reliability and efficiency, providing our legendary hospitality, and returning to consistent profitability. We made significant progress in 2021, including a profitable Q4, despite the pandemic that saw strong demand, 88% of 2019 revenues restored and managed business demand ahead of our expectations for December. While we don't expect to be profitable this quarter, the Omicron impact does appear to be isolated to January and February, and we expect a profit in March. We expect to be profitable in the remaining quarters and for the full year 2022 based on our current plans. Our people performed just really well during the Q4, as they always do, in particular during the holidays, and demand held up well through year-end despite the Omicron variant. Beginning in early January, we experienced a very difficult environment due to rapidly rising COVID cases and a decrease in available staffing levels. It's amazing, but in the first three weeks, we had roughly 5,000 employees test positive for COVID, with employee cases roughly 2.5 times what they were during the Delta variant. The resulting staffing shortage, combined with winter weather, caused a spike in flight cancels and a significant disruption to the operation. I'm pleased to report, though, that over the last few weeks, the operation and staffing have stabilized, and we've seen performance even better than during the holidays. Yesterday, for example, we were 95% on time, which I'm just hugely proud of. To maintain sufficient available staff, we extended incentive pay programs for ops employees through early February. While that does add temporary cost pressure, it's imperative that we have sufficient staff to operate our schedule and minimize our flight cancellations. COVID case counts are on a downward trend, and we intend to normalize our staffing and pay structure as a result. Hiring is part of the equation, of course, and we met our 2021 hiring goals, and we are on track with plans to add at least 8,000 employees this year. We're also raising our starting wage rates to compete competitive in the market and due to the impacts from Omicron and the variant and recent staffing challenges. We are further moderating our first half 2022 capacity plans to provide additional buffer for the operation. We're encouraged by the recent improvement in bookings across the booking curve, especially in the March timeframe, and we are hopeful that business travel will resume the 2021 trend. It appears that Omicron impacts are pretty well contained to January and February from a revenue perspective, and we believe our temporary approach to boost available staffing is working. We'll stay flexible, of course, and we'll be willing to further adjust our plans if needed. Several things have transpired since Investor Day, all driven by the pandemic, though. For Omicron, we would be on our Investor Day Q1 and full year 2022 guidance. However, I want you to know, make no mistake, we are laser-focused on preserving our low-cost position in the industry and returning to 2018 productivity and efficiency levels by the end of 2023. We believe Q1 CASM-ex is a peak, and our plans call for unit cost to ease from here into 2023. Looking at 2023, based on current growth plans, we expect CASM-ex to be down as compared to 2022. Restoring both the network and our fleet efficiency are key to returning to historic efficiency levels. Beyond that, I'm really excited about opportunities that continue network growth as we add gates in key cities such as Denver and Phoenix and Las Vegas, Baltimore, and Nashville, and even more. Beyond 2023, we see opportunities to meet and then beat our historic productivity and efficiency levels as we continue to grow the company and focus on modernizing our operational tools and processes. Mike will talk more about that. I wanna repeat my main message from Investor Day. Despite the near-term noise, we have a superb business model with substantial underlying competitive advantages. We have a great five-year strategy and a strong set of initiatives that will drive significant value. Our new co-brand credit card agreement is in place with our partner, Chase. Our GDS expansion is complete, and our Southwest Business team is armed with the tools they need to grow our business customer base. We continue to work on our new fare product and our revenue management system optimization, some more to come there, but both should begin producing value this year. As we continue retiring older 737-700 aircraft and taking the MAX aircraft this year in support of our fleet modernization initiatives as well. All combined, these initiatives are expected to deliver incremental EBIT of $1 billion-$1.5 billion in 2023, and we continue to expect roughly half of that value this year, given the initiatives in place. Like Gary said, last but not least, I just wanna thank our amazing people. There have been all kinds of challenges, and they have performed just superbly. They continue to do an incredible job and manage through all of these challenges, and I am just in awe of them. Together, we will emerge from the pandemic, and we will seize the opportunities in front of us. With that, I will turn it over to Tammy. All right. Hello, everyone, and thank you, Bob. I've worked with Bob for a long time, and I agree with Gary. He is going to be a great CEO. My friend, Gary Kelly, you are amazing, and I just wanna thank you for all that you've done for our company and for all of us and for all of our shareholders. I'm not gonna say anything else because I will get choked up. Instead, I'm gonna provide a quick overview of our financial results and share some additional color on our outlook beyond what we provided in our press release to you all this morning. I also just wanna thank our employees for their incredible resilience as we manage through this dynamic environment. It is their hard work, dedication, and focus that enabled us to achieve an important milestone in our recovery with our Q1 profit since the pandemic began. We reported a $68 million profit in Q4 or $0.11 per diluted share, and excluding special items, we reported a $85 million profit or $0.14 per diluted share. As Bob mentioned, our Q4 profit was driven by strong leisure demand during the holidays, business travel momentum, and incremental revenue from our new co-brand credit card agreement with Chase. Our Q4 results were all within the guidance ranges provided last month at Investor Day. For full year 2021, our net income was $977 million or $1.61 per diluted share, driven by $2.7 billion of Payroll Support Program proceeds. Excluding this temporary benefit to salary, wages, and benefits expense and other smaller special items, our full year net loss was $1.3 billion or a $2.15 loss per diluted share. Andrew will cover our revenue trends and outlook here in a minute. Taking a look at cost, we continue to experience inflationary cost pressure we experienced in the Q4, primarily in salary, wages, and benefits and airport costs, as expected. A portion relates to hiring, and we made great strides toward our hiring efforts in 2021 and remain on track with plans this year. Of course, the labor market continues to be a challenge which continues to pressure wage rates across the board. Since Investor Day, we have experienced additional cost pressures related to Omicron and winter weather. As a result, our Q1 unit cost inflation compared with Q1 2019 and excluding fuel special items and profit-sharing has increased about 10 points. Roughly half of that increase is driven by the $150 million of additional incentive pay we are offering to operations employees through early February, and the other half is associated with flying fewer ASMs than we were planning. In light of the significant impact from the Omicron wave on available staffing, extending the temporary incentive pay and further reducing our capacity were necessary steps to stabilize the operation. Aside from these impacts, we would be on track with our previous unit cost outlook. Market fuel prices have continued to rise here, which also resulted in a $0.10 Increase in our fuel cost per gallon guidance. Our estimated Q1 fuel price in the $2.25-$2.35 per gallon range is also roughly $0.25 higher than our Q1 2019 fuel price, and that's inclusive of an estimated $0.35 of hedging gains here in the Q1. Turning to our full year guidance, at Investor Day, we were planning for capacity to be roughly flat versus 2019 levels with no material impact from the Omicron variant on either revenues or costs at that time. Fast-forward to today, the impact from the Omicron variant on available staffing has led us to reevaluate our first half 2022 capacity plans, in particular, March through May. Our planned flight schedule adjustments take some capacity upside optimism off the table for this year and reduces our full year 2022 capacity outlook by about 4 points from roughly flat to down 4% versus 2019. I've already covered the $150 million of additional incentive pay in Q1. In order to be more competitive on the hiring front, in particular for ground operations, we are raising starting wage rates from $15 per hour to $17 per hour, which is estimated to be a $20-$25 million total impact to this year. Of course, we have contemplated labor rate inflation in our guidance as best we can for this year, understanding that the market is somewhat uncertain. This is clearly not where we hoped to be along our recovery curve nearly two years into this pandemic, but we are making great progress. While we must remain nimble in this environment and take the necessary actions to take care of our employees and provide a reliable product for our customers, we are very focused on the long term and determined to get back to 2018 levels of productivity and efficiency as we shared with you all at Investor Day. As Bob said, our goal is to get there by the end of next year. Although it is early, based on our current plan for 2022 and preliminary plan for 2023, we expect 2023 CASM-ex will decline year-over-year compared with 2022. Longer term, our framework that we provided at Investor Day remains unchanged, and that includes a post-pandemic target of mid-single digit ASM growth accompanied by low single-digit CASM-ex growth. I want to be clear that our longer-term CASM-ex framework includes an estimate for labor rate increases as best we can estimate today. Turning to fleet, we currently have 77 MAX firm orders and 37 MAX options with Boeing this year. While our plan assumes we will exercise the remaining 37 options this year, we maintain the flexibility to evaluate that intention as decision points arise. We continue to believe that taking the additional options this year will yield a positive NPV on aircraft replacement if we don't deploy them in the network. As I have mentioned to you all before, we won't incur a material CASM-ex penalty from holding on to extra aircraft in the event we temporarily park some of our - 700 while capacity is moderated this year. As we work our way back to an efficient utilization of the fleet, we remain in the fortunate position to have the flexibility needed with our retirement plans without a financial penalty. I'll wrap up with a quick note on our balance sheet strength. We ended 2021 with liquidity of $16.5 billion. Our leverage is at a very manageable 54%, and we continue to be the only U.S. airline with an investment-grade rating by all three rating agencies, which I believe is one of our key competitive advantages. We have ample liquidity that allows us for further cushion in the event of further COVID waves. Overall, our balance sheet strength puts us in a category of one in terms of our ability to withstand shocks and remain financially healthy. With that, I will turn it over to Andrew. Thank you very much, Tammy. I'll also start by extending my gratitude to Gary. I'll be forever grateful for all that he's taught me with his words and his actions. I'll provide some additional color on our revenue trends and outlook and point you to our earnings release for more detail. Looking back to our last earnings call in October, we were dealing with a Delta variant. The negative revenue impact to Q3 was $300 million. At that time, we estimated the negative revenue impact to Q4 of $100 million. Revenue trends have begun to pick up, pick back up since stabilizing in mid-September, and our outlook called for a sequential monthly improvement in revenues throughout Q4. We reaffirmed this in our early December investor update, and we closed the quarter strong. Our operating revenues finished within guidance, down 11.8%, and managed business revenues came in better than guidance, down 50% in December. We saw solid leisure demand for Thanksgiving and Christmas, and business demand held up well with positive momentum from GDS and Southwest Business. The negative revenue impact from the Delta variant came in lower than we thought at around $60 million, as we saw continued rebound in demand and yields throughout the quarter. However, we saw some choppiness in late December from decelerating bookings and increasing cancellations. We had a $30 million negative revenue impact from the Omicron variant as COVID cases increased. Combined, this $90 million COVID impact to Q4 was slightly less than our original estimate of $100 million from COVID, as we were able to mitigate some of the load factor decrease through higher yields. Of course, the most notable item in Q4 was incremental revenue from our new credit card agreement with Chase, which we covered in Investor Day and included in our most recent revenue guidance. While we can't share the specifics about the incremental revenue from our new credit card agreement, you can see that other revenues in Q4 2021 increased 20% compared with Q4 2019, far outpacing the recovery in passenger revenue, and we are on track for expected benefits in 2022. Our new markets continued to develop and perform overall in line with expectations, aside from the impacts from the Delta and Omicron waves. The Hawaii markets also showed improvement, and all these markets turned in line with the broad-based improvement we saw across the rest of the network. Now, looking at Q1, we estimate the weather-related and staffing-related flight cancellations in January resulted in a $50 million negative impact to operating revenues. Additionally, bookings have slowed for January and February, which are seasonally low travel periods anyway for leisure. Trip cancellations were running quite high beginning in early January, but have moderated and are back to normal trends. We expect the Omicron-related negative revenue impact to January and February combined to be roughly $330 million. Like the Delta variant, the impact of Omicron-related trip cancellations has been mainly focused in the close-in window, and we remain optimistic about the likelihood of demand recovery in time for spring break travel. On the corporate travel side, the business demand we experienced in December has slowed, but we continue to believe there's pent-up demand for business travel, and we're hearing from many of our corporate customers that they intend to ramp up travel post Presidents' Day. I think that will depend on where we are with COVID case counts and hospitalizations, but we're encouraged by what we're hearing from our customers in terms of their future travel plans. We expect Q1 managed business revenues to be down 45%-55% versus 2019 and to improve sequentially from January through March. Our Southwest and GDS business initiatives is also on track for expected benefits in 2022. When you put all these moving parts together, that gets us to our Q1 operating revenue guidance of down 10%-15% versus Q1 2019. This outlook is in line where we were in Q4, but we are currently expecting a step change in improvement in March. As far as our other initiatives, new fare product remains on track for deployment by mid-year, and the new revenue management system continues its progressive rollout. Lastly, we're in the process of adjusting our published flight schedules in March through May in order to further support the operation and adjust to available staffing trends. The results of this exercise, combined with the flight cancellations we have experienced so far this month, is a 3-point reduction in Q1 2022 capacity from down 6% to down 9% compared with Q1 2019. For full year 2022, as Tammy mentioned, is a 4-point reduction from roughly flat to down 4% compared with full year 2019. Our flight schedules remain subject to further adjustments if needed, but while this is a slight delay to our previous capacity plan, we still have time to get back on track. As of March 2022, we are roughly 75% restored based on trips, and we continue to expect to restore the vast majority of our route network by the end of 2023. With that, I'll turn it over to Mike. Well, hey, thank you, Andrew, and hello, everyone. You know, our people did face quite a bit of adversity in 2021, and I just am really proud of their tremendous finish to the year. They built quite a bit of momentum thus far into 2022. As we've all said, we've moderated or began moderating our capacity in the Q4 to provide more staffing cushion in the environment. At the same time, we knew we had some peak holiday travel periods over Thanksgiving and Christmas through the New Year's timeframe, and we really did jump up our daily trips. We needed all hands on deck through those periods, and we incented folks and we urged them or those that were willing to pick up open time or voluntarily work on their days off with premium pay. That certainly worked. Our people really responded. If you exclude the day of Thanksgiving, we averaged about 3,500 trips a day during that Thanksgiving holiday period, and that was up roughly 320 trips a day above the weeks leading into Thanksgiving. Our on-time performance for that period was 87%, and that was better than our five-year average. We ran a similar play over the Christmas holiday, and our daily trips there increased to roughly 3,600 a day, and our people responded. Normally during the Christmas holiday, you know, we deal with weather, but this year, we also saw the beginning of a sudden and surging spike in COVID cases. Because we had those people to pitch in to pick up extra shifts during that week of Christmas, we had a completion factor of 99.2%, and we had less than 1% of our flights canceled in the face of that COVID surge. All told, we ended the Q4 with an on-time performance of 72.6, mainly due to some of the challenges we faced in October. That's certainly not up to our standards. We must do better, and we will. Our holiday performances were very good, and we know that we can operate in our peak travel days when everyone is available, so we really have momentum to build on. In contrast to those previous holiday periods, January started in the face of severe weather and this Omicron variant spreading rapidly. As Bob mentioned, we had roughly two and a half times the number of employees with COVID cases for Omicron than we did with Delta. We had roughly 5,000 employees become sick in the first three weeks of January. The biggest impacts were in terms of flight cancellations for the period of time, the first week of January 1 through January 7. In that week, we canceled roughly 3,800 flights. About 1,900 of those were for weather, and about 1,600 of those were for staffing. Then our on-time performance for that period was 41.5%. We reinstated the incentive pay program to encourage, again, those who would come in and pick up extra shifts and help cover the flight schedule. Again, the response was superb. We got all that implemented, from January ninth through the twenty-fifth, our on-time performance jumped to almost 87%, and that leads the industry for marketing carriers. The incentive pay program runs through February eighth. You know, we're also benefiting from a decline in our employees that were sidelined due to COVID. Our case counts peaked in that first week of January. Just by way of example, we had over 700 pilots and 1,500 flight attendants that were unable to work in that timeframe, and thus the incentive program to help cover those that were out. Those COVID numbers have dropped substantially since then to roughly 100-150 people for each group, and that's a lot closer to what we originally expected. Next, we continue to aggressively hire. You know, Bob mentioned that getting staffed is one of our key objectives for 2022. We also wanna make progress toward our historic operational reliability and efficiency metrics. In a lot of ways, those go hand in hand, as we're not operating at optimal levels today, nor is our network restored to where we want it to be relative to 2019. For the over 8,000 employees that we intend to hire this year, about 40% of them are flight crews, about 40% of them are ground operations, so it's very heavily operations-focused to support the schedule this year and beyond as we resume the growth. As we restore the route network this year into 2023, that should provide the foundation to recapture better operating leverage. We're also working on other initiatives to improve efficiencies. Of course, we've got the fleet modernization cost initiative, but we're also working on things like enhancing our turn times, which are already the best in the industry, expanding self-service options for our customers, and investing in daily schedule management tools, which will help us manage irregular operations more efficiently. We've got many items in our technology and process improvement pipeline in order to support our low cost position within the industry and improve our overall efficiency and our resilience. Just in closing, as we move forward into 2022, we have an exceptional order book for the fleet with its economics and its flexibility. We have new technology foundations in place for our maintenance and our airport systems. We have a laser focus on getting staffed and running a reliable operation, and we're building an operations modernization portfolio of initiatives that I touched on. Our employees have sacrificed, they've worked hard through a challenging and ever-changing environment, and I think that positions us well to carry this January momentum through the Q1 and beyond. I am immensely grateful for their grit, their determination, and of course, their care for our customers. With that, Ryan, back to you. Well, thank you, Mike. I believe we have analysts queued up. Chad, if you'd please go ahead and begin our analyst Q&A. Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. The first question will come from Jamie Baker with J.P. Morgan. Please go ahead. Hey, good morning, everybody. Just quickly, Gary, when I first met you back at Kidder, Peabody, I could not have been less relevant, but you showed me just as much respect as you did to the, you know, Glenn Engel and Kevin Murphys and Sam Buttricks of that era, and it really meant a lot to me, and it gave me the confidence to continue on my, you know, career trajectory. I just wanted to thank you for that. I will sincerely miss speaking to you on these calls, but I do look forward to hopefully being a thorn in Bob's side. I would expect nothing less. Okay, good. I'll start with Tammy, though. Tammy, you emphasized that your cost outlook does envision higher wage rates. I'd asked you about that at Investor Day, and at the time, you said you weren't accruing for new labor contracts. I think I probably got my wires crossed. Could you just clarify that there's something for new union contracts in your forward cost guide? Is that accurate? Yes. No, thanks, Jamie, and I appreciate the question there. So, yes. We are not currently accruing for open labor contracts today. So we are not accruing for that. So there is nothing in our Q1 guidance. Longer term, though, we have incorporated our best estimate of annual labor rate increases into all of our targets. So, you know, here and then here, just to be clear for 2022, we, you know, we know we have some inflation here, so we're doing our very best to incorporate what we think we're going to incur here in 2022. So hopefully that clears that up for you. It does. Thank you very much. Any update on the fourth fare rung that you intend to load this spring? Are you still on track? If you're not ready to disclose what it includes, could you share any ideas that maybe you ruled out from a pricing perspective? Hi, Jamie. It's Andrew answering your question. We're still on track for a mid-year rollout of that. We're going through right now the technology user acceptance, and it's all going well. We expect this to be above Wanna Get Away. We've ruled out taking away features from customers and charging them more. These will be features that are in addition to Wanna Get Away, for which we believe customers will happily pay a little bit extra. We also believe these features will be relevant to, you know, business travelers, especially some small and medium-sized business travelers. That's how we wanna position it versus, say, the fare product just above and just below it. Does that answer your question? It does indeed. Thank you very much. Yeah, that'll be it. I'm sure a lot of accolades coming for Gary, so I kept it punchy. Take care. The next question will be from Duane Pfennigwerth with Evercore ISI. Please go ahead. Hey, thanks. I don't actually have any ancient Wall Street history, but I did wanna ask you, Gary, if you received any calls from music producers since you dropped your recent tribute. You know, we've always been very circumspect about confidential information here, so I'm gonna have to decline to answer your question. Fair enough. Well, I wish you well on that journey. With respect to the 4-point cut to full year capacity, is that all about the rate of demand improvement in first half, or was any of that a function of kind of looking at the operation and deciding you needed even more buffer on staffing? Yes. I'll jump in and Andrew and others may wanna chime in. No. It really was more about adjusting, being a little more cautious with regard to our operations. You know, obviously, Omicron's had a significant impact on us here in the Q1. So we just felt that it was prudent to take some capacity out. You know, as we have stabilized the operation and as you've heard us comment here, we're doing a great job in that respect with really an outstanding performance here over the last couple of days. The only thing I'd add to what Tammy said is, it was designed to make it more operable and give cushion to the operation. That's both how much we're flying, but also where we're flying, given some of our ground-based staffing shortages. The combination of those two were the crux of it. Obviously, we look at demand when we're making those adjustments, but the motivation here was operational reliability. Yeah, Duane, the only thing I would add, too, is that it's all a guess, right, at this point. We're making our best guess based on we have terrific staffing plans. I'm confident we will meet those here in 2022. You know, if we get ahead of those, you know, well, obviously we preserve the ability to sort of work on our capacity on the other end in the back end of 2022. We just don't know yet. Yeah, it's really all due to staffing at this point. We've got to run a reliable operation. We've got to have enough staff cushion. You mentioned it with ground handling, but I wonder if you could provide some anecdotes of where you know today you're obviously overstaffed from a longer term perspective. You know, what are some of the functions beyond ground handling where you're keeping, you know, actively deciding to keep a higher buffer and where predictability is just not there yet? Thanks for taking the questions. Yeah. I might separate sort of the you know their experience at the beginning of January and then the rest of the year, you know, as we had you know a really rapid rise in COVID cases in the first couple of weeks of January. You had an overall Southwest Airlines impact operationally, and then you had very locational impacts. An example would be the Denver ramp. We had a rapid rise in our Denver cases on the Denver ramp, and we literally had to quickly moderate the Denver schedule to be able to operate there. I think it's really the overall adjustments to capacity is really all groups. We need pilots. We need flight attendants. We need ramp staffing. You need the appropriate amount of buffer in all of those areas until we sort of see our way past COVID and understand what more normalized staffing, more normalized behaviors, more normalized sick leave looks like. I would argue it's really not one group. We have buffer. We're looking for buffer in all of those groups. It's very helpful. Thank you. You're welcome. The next question will come from Hunter Keay with Wolfe Research. Please go ahead. Thank you. Yeah, to reiterate too, Gary, you're a legend, man. It's been a pleasure. Thank you for keeping it interesting over the years. I had a question for you, and it's, I'd love to get your parting thoughts on the industry's outlook over the next 2-3 years. It's not a question about Southwest. I'm sure you're gonna say you're leaving the company in a good position to compete and win and succeed. As someone that's made a lot of good predictions over the years, what is your view, your sort of parting view on how the industry unfolds competitively, whatever growth lies over the next 2-3 years? Well, thanks, Hunter. I don't know how good of a prognosticator I've ever been, or I don't think of myself that way. I do think that if you compare the U.S. to other countries, the U.S. has left the commercial airline industry in pretty darn good shape. Were it not for the CARES Act, I think we'd be having a very different conversation. I think, you know, it's just important to acknowledge that up front. Having said that, there are still significant variations. When you talk about the industry, it's hard to think about it that way because there's strong and there's weak. There are strong balance sheets, there are weak balance sheets. I think what we've experienced in 2021 is really humbling. You know, a year ago, I... You and I haven't talked in a while, but I think everyone I've run into or had this sort of videotape replayed, I would have never bet a year ago that this is where we would be here in early 2022. I thought we would have this pandemic beat and behind us, and it's far from that. I think that just sort of provides an even bigger quandary now, which is, where do we think we're gonna be with a pandemic two years from now? We were honoring a former Dallas mayor earlier this week, and he and I were having the exact same conversation, and his guess was 10 years. You know, we're gonna be dealing with this for 10 years. I think that has a direct correlation with travel, tourism, hospitality, restaurants, all of that. We just have to hope for the best, plan for the worst, which is sort of the age-old advice that we've all gotten. It does feel like business travel wants to come back, and I think that's encouraging. We were hoping for stronger business travel here in January, February than what we're realizing. We all know why that hasn't happened. Just again, a perfect example. I think the industry is pretty darn well capitalized. It's taken on a lot of debt, which is gonna have to be carefully managed. We're gonna have to be more heavily dependent on consumer travel than where we were before. I think international also kind of fits into that category of it's probably different in the future than it has been in recent history. You know, we'll just have to be prepared to be more successful domestically over the next couple of years. In my opinion, and that's why I put it in my remarks, I think it's the best service and the lowest price wins. If you have that combination within the industry, you're gonna win. I think it is a low-cost game always, but I think that's even more acutely important right now, and that will be a laser focus for our leadership team certainly for the next couple of years. That's very helpful. Thank you. Appreciate that. Then, I asked you this question about a year ago, Gary, about, you know, you're a never-say-never guy. If there was anything you'd never say never to, I guess the same question goes for Bob. Is there anything that we can expect that you would say you'd never do as CEO or Southwest would never do as long as you're running the company? Well, you know, there's some easy things here. We're not gonna charge for bags. We're not gonna have change fees. I mean, we're gonna always be transparent. We're gonna be open and honest with our consumers. Now, you know, things change, you know, over the years for sure. As in my 34 years here at Southwest, we've changed our boarding, we've changed some of our product, we've added Wi-Fi, we've added Rapid Rewards, you know, program. Things always change, but we're always gonna lean to our customers. Yeah, I think the number one things that comes to mind, obviously, is no bag fees, no change fees. The other thing that's not gonna change, we're gonna treat our employees right, we're gonna treat our customers right, and we're gonna stand for service, and we're gonna stand for serving others before self. Thank you very much. Congratulations, Gary. The next question will be from Helane Becker with Cowen. Please go ahead. Oh, thank you very much, operator. Yes, Gary, I'm going to miss you as well. In fact, I remember our first meeting when you, Tammy, and me were sitting in my office at Lehman Brothers, and, you know, it just seems like we're too young to retire. I wish you the best in whatever you decide to do with your free time going forward, although maybe not so much free time that you'll have. Thank you, actually, for everything. Then separate from that, my question is really, not sure who wants to answer, has to do with the credit card program. Is there a way for Chase to separate out for you the charges that come for travel and the airline versus charges that come for stuff? Because as you think about going forward, the percentage of stuff should decline as people have, you know, their Pelotons and their computers and all the other stuff they bought during the pandemic, and they should start to shift back to travel. I'm wondering if Chase can parse that out for you and if you can gain any intelligence from that. Hi, Helane, it's Andrew. Yes, as part of our relationship with Chase, we do receive that on a regular basis, and we review it on a regular basis. Indeed, as you probably would've seen through macroeconomic indicators, charges during the pandemic skewed towards goods and less towards services. Then the services would also mirror the pandemic, and we could see when restaurants were more active with our card members or flights activity as well. That is something that I think tracks very well with what you see in the macroeconomics when you have it sort of on a high-frequency basis like this. Maybe we see it a bit earlier, and that does help us with understanding the pace and duration of these waves. It's been very, you know, very useful for us, and we expect a skew towards services going forward, which obviously would be beneficial to our industry. Right. You would expect that the rate of growth would what? Accelerate with services or decelerate? I think it would accelerate. Given the composition of people's spend, services are underweight now versus what they were in 2019. Given that customers very comfortable, it's a lot of cash in people's pockets, and they have some pent-up demand of potential expenditures above and beyond their kind of, you know, normal salary-based or compensation-based spending. We expect that composition to revert back more to normal as we would get past the pandemic, whenever that might be, as Gary pointed out. Therefore, services spending on our card and the economy as a whole should increase as the health crisis abates. Okay. That's very helpful. Thank you. On the constraining spring capacity due to labor constraints, will you be able to offset that with pricing? Helane, I'll jump in on that. You know, obviously we don't comment on pricing. We, you know, as always, you know, we're gonna work hard to achieve our financial objectives, but, you know, we'll decline to comment specifically on pricing. Yeah, I might just point you to what, you know, back to the Q4, which is we had, I think we had a really strong performance revenue pricing fare yield. We, I think, in my memory is it was 92% or so of capacity restored. We had 88% of revenues restored. Oh, yeah. which is leading in the industry. Yields and fares were just slightly below 2019. Not speaking to your direct question, but just if you look at the Q4, we had a very strong revenue performance. That's very helpful. Thanks, everybody, and bye, Gary. Very sad. Thank you. The next question will come from Mike Linenberg from Deutsche Bank. Please go ahead. Oh, hey, good morning, everyone. You know, Gary, it goes without saying, I mean, you're gonna be missed. To be on a Southwest conference call without Gary Kelly is gonna. We're gonna get used to it, but, you know, Bob's the right guy. In that regard, I do wanna ask you one final question on a call. In your new role, or I shouldn't say new role, but as your continuing role on the board, will you still dress up for Halloween? I don't think anybody can stop me. That's one of my pure joys in life, and I do have grandchildren who get a kick out of it. It's all about me. You know, I really enjoy dressing up. I'll keep it. That's great to hear. Gene Simmons will live on, you know, through Gary Kelly. He'll live on, and he's still my pal, you know, so. That's awesome. All right, well, onto a more serious topic here. I wanna go back to the capacity change for 2022. I mean, you know, I guess, Tammy, this is to you know, where for the March quarter, you're shaving 3 points. For the full year, you're cutting 4 points, and it's obviously having a tremendous upward pressure on your full year unit cost. You did highlight that the June quarter looks like it's gonna take, you know, obviously a big cut there. You know, as I think about the math, it, you know, it just seems like that, you know, you are taking a lot out. You did say you're being cautious. It's all about returning operations, you know, returning the integrity of the operations back to a normalcy. It does feel like it's extra conservative, or are you, that's down 4% for the year, you know, assume that you're not gonna exercise the 37 remaining options? Can you just give some additional color there? Just, it seems sizable. Sure. I'll give some color here and then, you know, we might have some other stuff in here. But, yeah, we, you know, I guess we haven't given up here on adding additional capacity in the Q2. Again, we're just gonna have to see how things go here on the staffing front. Mm-hmm. Obviously, as we've already said, our priority is on the operations. In whatever we end up with regard to our capacity for the full year, at least at this point in time, we intend to exercise all of our remaining options. Okay. The reason for that is really straightforward. Mike, we have a really strong NPV on those aircraft either way. Obviously, we hope that we're putting those into growing the network either in 2022 or 2023. We have a lot of flexibility here. The fact is we just don't have to decide right now. If we do not have, you know, a need for those in the network, we would just simply retire and accelerate the retirements of our -700. So w e're in the... Okay. You know, we've got the good fortune here of having tremendous flexibility, which was by design, when we worked through our order book with Boeing. Okay. Mike, I would just add too that this is all a forecast. If you look at Yeah. Look at Omicron and how quickly. Yep. We've adjusted. I think my memory is our network planning team is doing two or three times the number of changes that they would typically. While we've got a great plan for 2022, it all comes down to hiring. I'm pleased that we're on our hiring plans for the fall, and we're on our hiring plans so far for January. You know, in the case that we, you know, we're able to beat those, you've got some upside, but we'll just continue to adjust. I think, if you look at our fleet today, again, because we're constrained and therefore our ASMs are constrained based on our staffing, you probably have 5%-6% of the fleet that is effectively unflown. In other words, we could be generating 5%-6% more ASMs with the current fleet, you know, but for the staffing. We'll work really hard to make progress there. I wouldn't call that a year done yet in terms of capacity. You know, we've got a great plan, but I wouldn't call it a year done yet in terms of capacity. Okay. It's very fluid. Then just, Bob, I guess just as a quick follow-up, and this follows on Hunter's sort of the never say never. You did mention change fees. You talked about bags. I think I saw about a week or two ago there was something about seat assignments. But again, it may have been a reporter putting words in your mouth. Anything that you can highlight with respect to that? Maybe it was a misinterpretation. No. A reporter would never put words in your mouth, right? No. But, no, it was just an illustration. I was sort of going through the kinds of things that over time, I think you have a duty to look at, just like we have a duty to look at- Yeah. Mike talked about our operational tools. We have a duty to look- Mm-hmm. At our customer experience and how to enhance that. At some point, I think, just like we did years and years ago, we will probably wanna resurrect the work that we did there and just understand what our customers prefer, what our business customers prefer, what that does to the, you know, our efficiency of the operation. It was no prediction at all. It was just an example of the types of things that you do have to take a look at over time. Great. Very good. Thanks again, Gary. The next question will be from Savi Syth from Raymond James. Please go ahead. Hey, good afternoon. Just kinda curious on the managed business revenues. I know you kinda talked about expecting a step change in March, but how does kind of the trends you're seeing today compare to how you exited the year? Just any color on how much that is getting boosted by some of the GDS initiatives that you've rolled out? Sure. This is Andrew. I'll start off by saying we see that managed business travel, you know, like our overall travel fluctuate with COVID waves. There'll be a period of time early in the wave where cancellations surge and then bookings slow down. The next part of that is as- You know, cases and hospitalizations start to come down the backside. We see those cancellations attenuate and bookings pick up. We're on the backside of that, the bookings right now for managed business. We can see then that, you know, we go back on its trend that we saw throughout 2021, where above these up and downs, you were on a solid trend from January through December. Now, with regards to our initiatives, we can see that we are having a shift of travel from our previous channels to the GDS, but we also can see there's incremental on top of that. Now, because COVID has created such a disruption in travel patterns, we don't wanna extrapolate and give final numbers on that, but we already see that we are achieving our business case and it is causing some channel shift, but that was all part of our plan to be able to offer our corporate customers the choice of channel from which they wanna buy with Southwest Airlines. Makes sense. Just curious, you know, some of the shifting gears a little bit, on the regional airline side, you had some of your legacy competitors cut a lot of small markets. Regional airlines are struggling a little bit from a piloting standpoint, as well as some of those kind of 5G issues. Curious if you are seeing a benefit, given that Southwest does fly into some of the smaller markets, than you see some of the LCCs flying, if you are seeing any benefit from maybe this kind of capacity that's being constrained. Well, I can certainly, you know, read about the, their unfortunate situation. However, the COVID wave is such a predominant force in bookings right now, it's really hard to tease out a lot of other trends, within that. We don't really kind of look outside of our lane, so to speak, to what's going with others for the opportunistic, 'cause right now we're just trying to keep ourselves good, stable operation and, achieve our financial goals. Makes sense. All right. Gary, I'd like to echo a lot of the comments that have been shared on this call and wish you the best. Thanks. And the next question will be from David Vernon from Bernstein. Please go ahead. Hey, good afternoon, everyone, and thanks for your time. I wonder if you can give us an update on where you are with Boeing on getting the MAX 7 certified. As you look out at the next 2, 3 years, obviously there's 136 firm orders, 60 or so more options. How do we think about retirement expectations in relation to that? Should we be thinking that as these aircraft are coming in, you're gonna be retiring or getting rid of some of the older classics? Yeah, David, this is Mike. We've got about 450-ish 737-700s. At least half of our order book will probably be focused on replacing those airplanes. Boeing's telling us that they're targeting ATC for the MAX 7 by the end of the Q1. Of course, that's contingent on the FAA review process, which is a little bit different for new airplanes after the MAX grounding. Once they get that type certificate, it will take us about seven months, or we're planning on about seven months, to be able to bring that airplane on our operating certificate. We'll need to do things like get performance data from Boeing for the airplane, ingest that performance data into our systems, do all the quality assurance work on that, update our manuals, and then get our own CMO to approve our manuals before we can add the airplane to our ops spec. We've got a lot of flexibility in that order book. Boeing's a very good partner with us, and so we still expect to take the 114 airplanes at this point, but we may not be flying the MAX 7 until early 2023. Thank you. That's very, very helpful. Andrew, maybe just as a quick follow-up. I'm assuming that, you know, despite the lack of business travel, the selling efforts on the corporate side have been continuing through the pandemic. Is there any color you can give to us in terms of how GDS enrollment has impacted your traction in terms of, like, the number of corporate groups you have or the win rate in bid process? Anything you can give us to help us gauge kind of, you know, how effective this is gonna be in terms of the competing for corporate share going forward, it'd be really helpful. Certainly, I'll try to give you some color. You can also look in the ARC data because we went into GDSs, but also settled into ARC, so you can, you know, track for yourself what we're selling in ARC as well. If you look at our accounts, even before going into the GDS, especially going to Sabre, we had built up our corporate sales force in anticipation of this, and our overall effort had increased the number of our accounts like we shared in an investor day. Now, these accounts, they buy through multiple channels already. Some may be 100% one channel, but today, you take our largest corporate clients, and they will buy through SWABIZ, they will buy through our Direct Connect, and now they'll buy through GDS as well. It depends on the travel purpose as well as the subsidiary or population group within that company of how they buy. What we're doing is we're letting them move in between. We do see some like the government moving pretty strongly towards some GDS transactions. We see professional services not really abandoning some of the first two, the Direct Connect and the SWABIZ, and adding on GDS on top of it. It really depends on the travel purpose and on the corporation as to which channel they prefer, which is the thesis of our strategy of let the customer choose and get out of the way and stop having friction. As I mentioned earlier, the COVID waves really scramble a lot of trends. You can't be as precise as you would be in normal times. At the highest level, we do see incremental volume we're getting, and we're hearing from corporate that they are giving us incremental volume, when we speak to them because of these channels. Thank you. And Gary, thanks for all the time and congratulations on the move up. Thank you. We have time for one more question. We'll take our last question from Sheila Kahyaoglu from Jefferies. Please go ahead. Thank you, Gary. I echo those comments, and congratulations. Maybe if I could ask about the bottleneck in terms of ramping capacity from 2022 and 2023. It seems like a lot of the industry has faced supply constraints rather than demand constraints, especially domestically. You know, how do you think about Southwest overcoming those challenges as you take on 200 aircraft or so? I understand maybe half of those are for replacement. Well, I'll jump in and start, and you all can add. You know, in 2021, you know, we made some assumptions about the operating environment that we would be in and the environment that people would live in. It was just clear to us as we went through this Delta variant that that environment, it was not appropriate. We spent a lot of time in 2021 reacting to that caused our crews to be rescheduled, it caused irregular operations, and we had a reliability challenge for the airline. Our approach in 2022 really is to just accept that the environment that we're in currently might be the environment that we're in for a while and go ahead and plan the airline and staff the airline like that. That's what you're seeing with respect to the capacity adjustments here in 2022, is just making the assumption that let's don't assume things are gonna get better until they actually do. We have a very aggressive plan to go hire people. I think our wage rate increases, especially in the front line for the ground, will help us accelerate our staffing. I think we'll have plenty of access to pilots and flight attendants. I feel good that our staffing plan is going to come to fruition. Then the question just is as we bring the people on and we mitigate the premium pay, we mitigate some of the irregular operations, we run a more stable operation, will we see different behaviors? If we do, that gives us upside. Well, and Sheila, yeah, back to just sort of what's the constraint. You know, at the beginning of the pandemic, it was all about managing down your capacity because of demand. You know, demand fell 97% and then stayed down 70% for a long time. It was all about managing to lower demand. Well, that's not where we are today. You know, again, sort of back to the Q4, we had strong revenue, strong yield, strong fares, strong demand overall, and that's with business demand down 50%. Very strong leisure. In my mind, leisure has returned to 2019. Obviously, that was interrupted by Omicron, but I'm confident that the leisure demand is restored. We just need to get the staffing levels to the point where we can operate our aircraft, operate them reliably, produce the kind of operational performance that our customers need and want and deserve, and it's just gonna take staffing to do that. Obviously that staffing in a strong labor market, which is why you saw us raise our starting wages. No, to me, the moderation is all about staffing, not because of any concern over demand. You layer onto the Q4, you know, the 50% recovery in business continues to recover in 2022, and we're hopeful that it recovers by the end of the year to say down 10-20. I think we'll have plenty of demand. It's all about getting the hiring to restore the capacity. Awesome. Thank you. Thank you, Sheila. All right. Any last thoughts before we wrap up? Yeah, thanks, Ryan. I just wanted to acknowledge all the kind comments from everyone. I'm very appreciative of that. You know, some of the old-timers caused me to reminisce when I started as CFO. It was 1989, and in those days, we didn't do this. I was investor relations, and Tammy is laughing because I had to beg her five years into this to come bail me out, but I did the investor relations. We had the CFO, we had a controller, and we had a treasurer. We're cheap now, but we were really cheap then. We had one assistant that supported all three of us, and I did the investor relations. We would send out, we had this auto fax system where we would fax out, you know, the press releases, and then some of you would be really angry with us because you were at the bottom of the fax list, which meant that you were. I don't know how long this damn thing took, but it was not instantaneous, we'll put it that way. I would talk to each analyst individually on the phone. When I couldn't take it anymore, I begged Tammy to come over from leading financial reporting to come do investor relations. She was the very first investor relations professional in the history of Southwest Airlines. She modernized all of the things that we enjoy today. It took a while for her to beat that into me, but she eventually did. The other thing you caused me to reminisce on is, you know, Tammy, who was and is a star, she moved on to other jobs and hired Marcy. Then, Marcy moved on to other jobs, and now we hired Ryan. That's pretty remarkable that in 33 years' time, we've only had three people, three different people leading investor relations. I'm very proud of you guys. For all my friends here, I will tell you, and I've told all my Southwest colleagues this, I learn more from doing investor relations than I learned going to school. The questions that you all have, the ideas, the way you challenge me at least over the years has been invaluable. Not to mention, you know, the very rich friendships that we had. Helane will remember, and this, I think I was controller at the time in the late eighties, we would do a show at the big Shearson Lehman Hutton investor conference, which was multi-days, and people would come, they would stay, you know, for days. Southwest would put on this Broadway like parody of the industry. We'd pick on Frank Lorenzo, especially. He was a good friend of mine, by the way, and Crandall and others. Helene, I remember the first year that you came on, you know, working for Bob Joedicke, we parodied you, and we had an actor walk across the stage. I don't remember the song, but we had... We anointed Helane Miss Shearson Lehman Hutton because she added a lot of glamour, you know, to the sell-side analyst community and to this day. In any event, I'm very grateful for the friendships, very blessed to have been at a really great company for 36 years. I just heard this morning that, you know, I knew Parker was retiring in March, and I didn't translate that into, well, that means that this is his last analyst call. I was told that he reported that he's done between being CEO and CFO, 107 of these quarterly things. I did the math on mine, and I want every one of you to know that it's 134 for me. Not that I'm keeping score with Parker. I will leave you all with that and leave Southwest Airlines in great hands. As you all know, I'm not going anywhere. We got lots of work to do, and I'm gonna be here doing my little part. Ryan, thank you very much, and back to you, sir. Well, that's fantastic. Thank you for sharing. Of course, you are a legend, and I think you're the GOAT. Not a goat, but the GOAT. The GOAT. All right. That's right. We'll sign off here, and that wraps up the analyst portion of our call today. I appreciate everyone joining, and have a great day. Thank you. Ladies and gentlemen, we will now begin our media portion of today's call. I'd like to first introduce Ms. Linda Rutherford, Executive Vice President, People and Communications. Thank you, Chad. We can go ahead and get started with the media portion of our call today. I just wanted to welcome everyone. You can go ahead, Chad, if you want to just give them instructions to get queued up, and we'll get started. Certainly. Thank you. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll just pause momentarily to assemble that roster. Thank you. The first question will come from Kyle Arnold with The Dallas Morning News. Please go ahead. Thanks. I was wondering with those 5,000 COVID sick calls that you had in January, how much of a fallout are you seeing from? Are all of those, you know, individuals being sick themselves? Are you guys seeing much fallout from family members or from schools being closed, daycares, those kind of other hiccups that we're seeing in the economy? Kyle, those were all people that were tested positive for COVID themselves. They weren't not coming to work because of some family issue. They tested positive and reported the positive COVID to us. Kyle, the good thing too is it's different than Delta. The cases came on really quickly. The rise was, you know, alarming, but on the other side, the fall in the cases was similar. The wave was very narrow, which was painful on the front end, helpful on the back end because we got people back a lot faster than Delta. No doubt, everything that you mentioned, Kyle, I'm sure we were incurring, too. It's just been an incredibly challenging time for everyone. All the additional demands that a household have now, I'm sure, impacted that. Which is, be it, caring for a sick spouse or child or, you know, a school closure, or just, you know, just dealing with everyday life. I think that would be on top of the numbers that we shared with you. Appreciate that. The next question will be from Leslie Josephs from CNBC. Please go ahead. Hi. Good afternoon, everyone. Thanks for taking my question. With your hiring, for 2022, I was wondering how much of those How many of those people are replacing other workers and net, where do you expect to end up in headcount by the end of the year? Overall, do you expect salaries to be lower than 2019 before the pandemic as the junior workers are coming in? Leslie, the 8,000 number that you hear, that's the net increase in our full-time active equivalent employees. You know, one of the benefits that you do get from hiring people is you do get to average down the scale increases in the contract. We've got about 40% of that group will be flight crews, 40% will be ground ops. All of those are covered work groups. I do think we have an opportunity on our wage rates as we have newer people come in to average those down. I haven't looked to see what that means exactly as compared to 2019. That's a good question. Leslie, I think- Oh, sorry, go ahead. Just two, yeah, one thing embedded in your question maybe and then just the numbers on the totals, I think, maybe you were implying, so what, you know, is it a net and what's happening to attrition? Our attrition is up. You know, during COVID, our attrition is up modestly, but it's not up alarmingly, which is a good thing. Sort of back to the numbers, I think we ended 2021 at roughly 55,000 active employees. You add the 8,000 plus, and the plan would be to end 2022 at about 63,000-64,000 active. Okay. Thank you. You're welcome. The next question will come from Alison Sider with The Wall Street Journal. Please go ahead. Hi. Thanks so much. I think we've probably asked about this pretty much every quarter, but just curious what you're hearing or what you're picking up about the mask mandate and the likelihood it would get extended. Yeah, just curious how you're seeing that playing out in a couple months? Hey, Allison. Well, yeah, I don't believe there is any current discussion about extending or terminating the mask mandate. I think, you know, it's well established that once you're on board the aircraft, the environment is very healthy with the, you know, continuous air refresh. Adding the mask is an added layer of safety. Given the fact that we're right in the midst of this Omicron surge, now is not really the time to revisit that question in our opinion. I think, you know, that's representative of the A4A opinion as well. We survey our customers, and there's still a significant number of customers who feel safer with the mask. There'll come a time when the mask won't be necessary, and I think we'll all look forward to that. Right now is not the right time. I guess if I could ask one about hiring and just, you know, kind of the challenging labor market. You know, in addition to the minimum wage increase, just curious if there's anything else you all are doing. You know, I know last year you talked about kind of making on-the-spot offers and doing all these job fairs. You know, are there any other kind of creative tactics you're having to utilize to bring in all these people? Oh, yeah, Alison, I think in the current, you know, tough environment, you use every lever that you have. Obviously you've seen us move our starting wage rates along from sort of where they were to $15-$17, and some airports, they were even $20 at this point. We've got a team that's worked very hard on the processes. How can you take steps out of the process? If it took, I'm just making this up, but if it took 30 days to get from interview to hire, can we get that to 10 or eight? Because the longer that process is, the more you run the risk that that person takes a job somewhere else. We're doing instant offers in some cases, as you mentioned. We're using different techniques to get people, quote, “into the funnel of hiring.” A lot of social media, a lot of mining for information. I would just tell you, we're using every lever out there because I mean, Southwest is a wonderful company. We get our share of resumes and interest, but it's just tougher than normal, and we're turning over every rock in terms of what we can do to hire employees. A lot of that is, yes, it's about pay and it's about pace. Thanks so much. You're welcome. The next question will be from Dawn Gilbertson from USA Today. Please go ahead. Hi. Good morning. Gary, you mentioned 1989. I'm gonna sound a little bit like Jamie Baker here, but I'm in possession of a Gary Kelly, Vice President of Finance, business card. I'm wondering maybe I can monetize it through an NFT or something. Wanted to wish you well. Thank you, Dawn. But, uh- I remember all the rough interviews I had to, you know, suffer through with you, so thanks for reminding. Couple of questions here on the traveler front. First, pretty quickly on the March to May flight cuts, could someone put that capacity decrease into the number of daily flights for me and tell me, like, how much of that business is already on the books? In other words, how many people are you gonna have to notify again about schedule changes? Then more importantly, on the new fare category, Bob, I'm wondering, I think Andrew mentioned, you know, we're not gonna take anything away from Wanna Get Away. I'm wondering if you're willing to go on the record to say, I mean, with something like offering people who buy one get a Wanna Get Away, one bag instead of two, is that taking something away? On a related front on that, I'm trying to figure out what could you guys add that you don't always have? My mind goes to early boarding. Are you considering adding early boarding, you know, the EarlyBird Check-In fee to that second fare category? 'Cause I know you in some tests a couple years ago, you called it Wanna Get Away Plus. If you do include EarlyBird Check-In in this new fare category, would EarlyBird Check-In as an ancillary item go away? No, I'm- Thank you. I'll let Andrew come back to the flight count, but you asked. You need to join our marketing team because you probably put everything that we've looked at on the table. No, I'll just tell you, it's just too early to give away exactly what, or for a lot of reasons. Competitively, we're not ready to reveal exactly what that fare product looks like. Andrew's right. We're not taking anything away. It's going to be very attractive in terms of where it's positioned. I think it will be what you would expect from Southwest Airlines in terms of consumer friendly, but we're just not ready to let you know, but it's coming soon. Just to double down, we will not take anything away from Wanna Get Away. There'll be Wanna Get Away or something above it, but we will not take anything away. Right. From one g et to away. For the flight counts, the March flight counts have already been published, so those have already been handled. The April through May have not yet been published, so that's what we mentioned in the press release and in our conversation that we're in the process of doing that. We don't have a flight count yet to give you on that. Those we expect to have published in a couple weeks' time, so it'll be well in advance of travel and be less disruptive. The bookings out that far are pretty much. Yeah. You know, the bookings during COVID generally skew closer in. What we have that far, the book is modest, so it'll be some customers are impacted, but it'll be a modest number 'cause we're doing it well in advance. If I can ask one very quick follow-up on the new fare category. What are you going for there? I know it'll vary by route, et cetera, et cetera, but obviously this is a revenue initiative you've been talking about for a few years. What are you going for in terms of the fare differential, average fare differential between Wanna Get Away and whatever this new product is called? Thank you. Again, Beth to you, Gary. What we've done over the pandemic, if you look at our website, you'll see more modest step-ups between Wanna Get Away and Anytime and Business Select. We think that has had a laudatory effect on our revenues, and our customers have given us good feedback. We like more modest step-ups compared to what was perhaps there a number of years ago. Having a fourth one that comes in there, we would desire to have at the end four products with modest step-ups in between with features that customers are willing to pay that modest step-up for. It's designed to be pro-consumer and get someone who can, you know, someone willing to give us additional money for additional features. Thank you. The next question will come from David Slotnick from TPG. Please go ahead. Hello, good afternoon. Thanks for the question and congratulations again, Gary. I wanted to know if there is any update on when you're planning to bring back full onboard service, including alcohol. Thanks very much. We had planned to bring that back around the middle of February, and we ended up because of the Omicron virus and just you know making sure that we had enough separation in the cabin for everyone. We delayed that. We're looking at that here some time in late in the Q1, maybe early in the Q2. Okay, thank you. Thank you. The next question will come from Mary Schlangenstein from Bloomberg News. Please go ahead. Hey, thank you. I wanted to ask two quick questions. The first is, you've said over the past year that you hope to add a total of 25,000 workers over three years. I wanted to see if you still think that's a realistic number or if that's one you will have to increase. The second question is for Gary. Gary, is there something that you were unable to accomplish in your years as CEO that you would like to see Bob take on and accomplish? Well, let me just take the hiring. And again, sometimes you have to separate gross hiring and net, you know, because we always have attrition. You know, the 8,000, as you think about our growth going forward, the 8,000 per year that we're talking about here for 2022, I can see that persisting. We've got a lot of air, you know, into the future, in future years. We've got a lot of aircraft coming this year. We've got 114 in our plan. We've got a lot of work to do to restore our network back to what it was in 2019. I think, Andrew, we're roughly 75% restored at this point, it's my memory. There's a lot of work to do to add back depth, you know, after we open the 18 cities. Beyond that, we have, I mentioned this in my remarks, we've got a lot of growth opportunities. We're picking up substantial gates in Denver and Phoenix and Baltimore and Nashville and others. All of that will take aircraft and all of that will take employees. Is it exactly 25,000 over three years? I can't tell you that, but it, you know, you sort of take the 8,000 in 2022 and extrapolate that, and it's a significant number. Mary, I hadn't really thought about it the way you asked the question, but it is a wonderful question. I think you know, as we think about Southwest Airlines in year 51, it is so much stronger and better prepared than at any point in time in our history. I think back 18 years ago, we had a lot of challenges. It was post 9/11, and the world was just different. There was a shift, you know, away from short-haul travel to longer-haul travel. We weren't necessarily real well prepared for that. A lot of things needed to be retooled, and still retain the essence of Southwest Airlines, which I feel like we've been able to do. The speed of change in today's world is just faster than it was 20 years ago. I would wish for Bob that we have a better technology platform in place compared to 18 years ago that would enable a faster and more tactical-like decisions. For us, anything that we wanted to do that was different in the 2000s meant years and millions in terms of construction. It became a really significant strategic choice about which road you took when you came to the fork. I think we have a much more settled and stable strategic outlook today, which I know that both of us. Bob is impatient, and I think that is a good and a bad quality for a CEO. Certainly, he's urgent and has been a huge contributor, of course, to getting us to this point and laying out the direction that we're headed. It's not like these are new ideas for Bob. He's been working on this for a long time, like I have. I think the one thing that I'm grateful for looking back is that the things that we decided to do, we had a very supportive board. We had willing and eager employees to embrace the change, and we were able to fulfill the visions that we had. That's pretty rare. A lot of things you try, they don't work, or for whatever reason, they get derailed. You know, for us, we were pretty much able to do just about everything we wanted to do. There's a couple of things that we set aside, code-sharing as an example, that eventually we'll come back to. You look at the things that were accomplished, and it's a pretty mighty list there. He's got just as ambitious a list going forward. Mike's. He's detailed with a few words, but there's a lot of depth to what Mike's strategy is for ops, and it's just critical to our future. Hats off to the technology and the business leaders who have gotten us to this point. We're in a far better place today than we were then. I think we're. As I said, I think we're extremely well-positioned, certainly for the next five years and beyond. I'm very excited, I'm very enthused, and I know Bob is too. Great. Thanks very much, Gary. Good luck going forward. Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Ms. Rutherford for any closing remarks. Chad, thank you. I just wanted to add, Gary, I know that you had many hats to wear in the roles in the last 18 years. On behalf of the communications team, just really wanted to thank you for being our chief spokesperson. You've made our jobs easy, and we appreciate and love you. With that, if you all have any further follow-up for us, you can reach the communications team at 214-792-4847 or via the media website at www.swamedia.com. Thank you. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.