With ‘Virtually Zero’ Air Travel, Southwest Warns of Pay Risk

Southwest Airlines Co. has to prepare for the risk of becoming a “drastically smaller” company, and Chief Executive Officer Gary Kelly told employees he’d prefer an across-the-board pay cut to more dire scenarios -- such as the first involuntary furloughs in the carrier’s history.

Kelly outlined possible scenarios if travel doesn’t begin to pick up in the wake of the coronavirus pandemic, addressing workers in a video message Thursday that was part pep talk and part warning. While Southwest has cash reserves plus $3.2 billion in government payroll aid to survive the coming months, he encouraged workers to “fight like we’ve never fought before” to lower costs.