![]() There is no change in our efforts to evaluate the risk reward of a single aircraft type or supplier. But all that is temporary and we plan to aggressively recapture it once the MAX is ungrounded in our - in a superb position given our return on invested capital. It is our seat growth is not keeping up with demand, much less allowing us to expand and we're losing share. Secondly, we're always monitoring the used 737 aircraft market, we'll continue to do that. So we're actively deferring retirements where it makes sense. Number 1 is mainly our 700 retirement schedule where we have a lot of flexibility. And with that in mind, we are aggressively pursuing a couple of tactical ideas. So with regard to the fleet, we're assuming that the MAX grounding is short-lived, meaning there are months to go and not years to go. If we can continue to execute against all these goals, that means that we only have one problem, and that's fleet growth. Having said all those things and all assumes that demand in the economy remains strong and that oil prices remain stable and low. And then finally, we want to keep our network intact and continue making what modest tactical adjustments we're able to do. We want to continue on with the capital projects that are under way. We want to settle with Boeing for 2020 compensation. We want to protect our finances and our jobs and continue to keep costs low and slow the rate of inflation and do that even better. We want to continue to serve our customers very well with exceptional hospitality and in fact even better. We want to continue to run a great operation, in fact even better. Our goals for 2020, given all of this are very straightforward. And we're working through all of that right now. Boeing surprised us all this week with our June, July predictions about the grounding, and obviously that would make our and other airlines' June dates unworkable. Right now we're scheduled for June 6th return which implies an ungrounding several months before. Boeing needs to get the work done to get the certification flight done, give the FAA a chance to do their work and unground this airplane. More importantly, our pilots are confident about the MAX. So we're three months later since our last earnings call and unfortunately we're still talking about the MAX unhappily. But we also intend to settle up 2020 as well. When you can do the math on the stock price effect, but we settle with Boeing for the 2019 MAX groundings and the settlement seems to have zero effect on the price per share by the way. But they would have been 28% higher and 20% - 27% more than a year ago, but for the MAX. Our earnings were still a record on a per share basis - non-GAAP basis at $4.27, and that is truly remarkable. The MAX groundings reduced our annual operating income $828 million. Our objectives were to run a great airline, serve our customers exceptionally well, protect our finances and our jobs, and follow through with our capital projects that were under way, and we were able to do all those things. The grounding of effectively 75 of our airplanes which is about 10% of our fleet presents a crisis like challenge, and our people are ready for it with the best planning, tools and technologies in our history, but more importantly with the right fortitude and the right resolve to get through this crisis. This is our 49th year and there, at least in my experience, there is no more remarkable year than 2019. Straight away I want to thank our employees. Thank you, Ryan and thanks to everyone for joining us for our fourth quarter and year end 2019 earnings call. Kelly - Chairman of the Board and Chief Executive Officer With all of that said, we'll go ahead and get started. Keep in mind these timelines and estimations could change materially with impacts on the amount of financial damages we incur, our published flight schedule beyond June 6th and our fleet capacity and capex assumptions to name a few. And we are also providing commentary today regarding the ongoing MAX groundings and our current estimations of timelines and current planning assumptions for 2020. Both of these topics are covered in great detail as always in our earnings release disclosures as well as on our IR website. We call it out special items in 2018 and we will make reference to 2019 results that compared to prior year non-GAAP results. And of course, our actual results could differ from current expectations for a number of reasons. We will make forward-looking statements in our remarks which are based on our current expectations of future performance. ![]() ![]() I know it's a busy airline earnings day, but we're going to start out with prepared remarks from Gary Kelly, our Chairman and CEO Mike Van de Ven, Chief Operating Officer Tom Nealon, our President and Tammy Romo, Executive Vice President and CFO, and then we will open it up for Q&A.Ī few quick disclaimers.
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