isning us now from dallas southwest chairman and ceo gary kelly. good to see you. s for 2019 rise 3% per miles flown, more than analysts were anticipating. bowed to squeeze that. how do you plan on squeezing more out of 2019? gary: good morning and thanks for having us. result obviously not a that is satisfactory to us either. that is the preliminary view and we have a lot of work to do. so the main thing we need to do is make our efficiency initiatives a top priority. in the been investing airline, we have been investing in airport infrastructure, we have been deploying new technology, and those are at higher levels and we will want to grow into those investments .ver time as i have been saying earlier today, it is time for us to make driving the efficiency through the organization a high priority, and that will be the case for 2019. vonnie: returns are healthy, according to you guys, but perhaps you are not able to ask for as much extra going forward as some of the other .irlines is base fares across the industry becoming a problem for major companies like yoursel

joining us this morning is southwest airlines chairman and ceo gary kelly.t's great to have you back. good morning to you. >> great to be with you. >> you do say we will continue to experience year on year unit cost inflation of at least three percent. how hard is this -- is this treadmill getting faster and can you keep up? >> well, i guess that is an interesting way to ask it. first of all, i'm very happy with where we are. this is a great third quarter. we are going to finish the year strong here in the fourth quarter and very well positioned for the future. we made a lot of investments for the future, looking forward to serving hawaii next year. just a lot of exciting things on tap. this year it looks like our unit cost excluding fuel will come in roughly flat to maybe up one percent. we have seen some inflation creeping in here in the latter part of the year. our early read for next year is that that will continue. we will be busy over the next quarter spooling up efforts to drive some efficiencies throughout the organization. one thing that has been ha

southwest ceo gary kelly will be on "squawk on the street" at 9:00 a.m.he'll talk about the quarter there. >>> coming up shares of microsoft helping the dow's rebound so far this morning. we'll see what happens the company's earnings beat pushing the stock market higher. we'll show you what's ivdring profits at microsoft next. at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react... ♪ ♪ fight security threats 60 times faster with ai that sees threats coming. the ibm cloud. the cloud for smarter business. the

joining me on the panel today our very own susan lee, kevin kelly, managing partner, president of company management and ceo of the lakefield report. gary and john are both box leaders. shares of facebook are now up more than 1% after hours the social media kicking it out of the park with profits but disappointed on revenue and again their user growth show signs of slowing down and we have tech expert lance here with us as well. lance, what you make of this? after hours the stock came way down but now it up. white? >> it wasn't an official facebook weren't that revenue would be down because spending more money on stories and satisfying the need of the european government for privacy so they were doing stuff that telegraph this was going to happen but it wasn't as big a dip as they expected. you got 2.6 billion users and people are using the stuff every saturday and they shifted all of their revenue to mobile and i can remember the days where it struggled to do that. david: but you still have rising costs, more relations, not only here but in europe and you have the slow growth of users. that's three strikes and you're out, right? >> not

gary, can you make sure it's on there? >> can you hear me? okay. you can hear me. my name is judy iura. i'm kelly's mom. i'm 85 years old. i live in los angeles but grew up in oakland. during -- my husband of 95 years -- he's 95 years old, he couldn't be here because he has par parkinson's, and he lives at home with the help of caregivers. during world war ii, along with other japanese american families, my husband's family and my parents were forced to move out of california and abandon a thriving business at a great loss. therefore, learning of kelly and jason's difficulties in satisfying the codes for expansion of their 1400 square foot home, which is very modest, is brought back memories of the challenges my husband and i faced in finding a place to live. in 1957, when my husband and i tried to rent our first apartment, we were told the owners did not want to rent to asians. by 1965, when we needed a larger home to accommodate our growing family, we encountered a similar road block with private -- oh, i'm sorry. >> sorry, judy, but i may give you extra time later. hi. gret gladstone. so the code asks for 650 feet mas

kelly grabbing corey lewandowski by the [ bleep ]. >> nothing goes better with a baseball game than a [ bleep ]. >> what led to gary busey snorting cocaineff his [ bleep ]. >> it's a small mouth here, you know, how big of a [ bleep ] can it accommodate? >> you don't want to go too big. >> i also wanted to give a special shoutout to our news director and chief meteorologist for taking a [ bleep ] on me. >> asha. >> a [ bleep ] in [ bleep ]. >> that is correct. >> hey, spike, we have a great idea. we're going to teach you to [ bleep ]. >> why? >> because [ bleep ] is super fun. >> all right. we have a great show for you tonight. we have music from big boi, daniel kaluuya is here and we'll be right back with martin lawrence. ♪ from the start, the c-class was ahead of its time. [ indistinct radio chatter ] still, we never stopped making it stronger. faster. smarter. because to be the best, is to never ever stop making it better. introducing the new c-class. visit your local mercedes-benz dealer for exclusive offers. (man) hey portal, call rory. happy birthday! (woman) awww, you remembered! (man) of course i remembered, you're my sister. (wom

gary cohn? [laughter] in the program, we are going to get to talk to alan schwartz, guggenheim partners for more on goldman's new leadership. any thanks to jason kelly want to june into jason every day from 2:00 until 5:00 eastern time. coming up, general electric shares are surging in premarket as the company names lawrence culp as a chairman and ceo. i'm watching whatever but else's. this is bloomberg. ♪ david: this is what i'm watching. general electric. there shares are searching in the premarket after the company blamed lawrence culp to be the ceo. brooke sutherland come up bloomberg columnist. you surprised? >> i was. there have long been questions about john flannery, but i think people thought he had a little more time. i certainly was not expect them to wake up to this announcement today. he is a 30 year veteran of the company appeared when he was brought in, people wondered, did he have what it takes to totally revamp this company that fostered his career where he has all of these friends and colleagues. a loyalty to some of these businesses that he previously ran. he is taken decisive steps. he is undertaken a breakup of ge, spinning off