earlier in the spring, this is suboptimal joining us now is southwest airlines ceo gary kelly. do not shy away. gary, because you're so good and so deserving of the respect, could you please tell us what you see going on because this is not you and it's not southwest >> good morning, jim great to be with you it's been a rough weekend and, obviously, i really feel for our customers and our people that are trying their best to serve our customers. but when an airline gets behind, it's hard to catch up. if you go back to friday, basically the faa had a series of delay programs that were implemented that covered all of florida, every single one of our stations, including a seven-hour ground stop at orlando you'll have to ask the faa what was the cause of all that. about half of our airplanes touch the state of florida we're one of the largest airlines in the country. by the end of the day, we had significant numbers of airplanes and flight crews that were totally out of position. and as any -- again, any aviation expert knows, it takes several days to get everything back aligned so

let's get the details now from gary kelly, southwest airlines ceo. ock is down by about 1.5% so far. i just want to get your understanding of trimming your flight schedule. is this the bottom of trimming? gary: i think so. you're right, we are still working our way out of this pandemic. we are beyond the survival stage and into the stabilizing phase. it is just a matter of getting our staffing aligned well with our flight activity and customer activity. so it has been really sharp -- the good news is there has been a sharp improvement in demand and travel and revenues. the delta variant surge in the summer definitely hurt that, and by $300 million in the third quarter. that in and of itself is sort of an illustration of how volatile the world and the environment still is for us. our normal staffing models just aren't as defective right now, so we are trying to make sure we don't overcommit and we deliver a great product for our customers. guy: you said in the notes this morning you were too aggressive going into q3. are you being too conservative goin

i'm talking about the chairman and ceo gary kelly gary, you shy away from nothing, and you have comey when the stock is down. i know you take a long-term view before we get to vaccination, how is business, and particular, as david is going to ask you, how is the business of the business person? are they back? >> great to be back. thanks for having us you know, starting with the third quarter, i was really encouraged by the, you know, the surge in demand and revenues it's just a shame that we had the covid surge on top of that, because it cost us $300 million. including that, that was a handsome profit. very encouraged because of that. we didn't end up there because of the covid surge, but with that more or less behind us, the demand for the fourth quarter looks better as a consequence. holidays look good, very much in line with what we saw pre-covid in 2019. on the business side of things, jim, really not much has changed since we talked after the second quarter. i think in july, when we were here, we talked about business travel being down about 63%, and we regressed in september, i

later this hour, phil le beau with speak with southwest head casey murry and gary kelly will join then the street" at 9:30 eastern time, later, we will get a fresh read, last month's report showing a record number of unfilled jobs in the u.s economists expecting more of the same this time around as companies continue to struggle, of course, to fill some open positions. >> it's that time, dom chu what's moving in the pre-market? >> let's kick things off with a dow component. we're watching shares of nike off a percent in the pre-market trades, 10,000 shares of volume, the athletic apparel and shoe giant gets initiation over goldman sachs. analysts say buy it's a 172 price target to buy they show a macro-industry backdrop and a much more directco consumer business that stock is down roughly 14% over the course of its period from the highs to the recent lows here. so just watching kind of what's happening there. next up, shares of square you were 1.5% of pre-market volume tin tech gets over88 atlantic equities they have a $300 brand positions, also growth opportunities with the buy now,

cause the cancellation because pilots and other workers walked out the faa, southwest airlines ceo gary kellin the union for the pilots said that is not true, the pilots union is fighting the vaccine mandate in court but they say there is no stakeout or protest to that effect related to the vaccine. that is the latest, things are stabilizing and approving but ms these last few days. liz: stock slightly recovering, i imagine this is not a good time for some travelers who have been waiting. grady trimble from midway chicago airport they're down near session lows off of 101 were down about 80 at the moment we are coming right back, don't go away. ♪ that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum! this may look like a regular

later in the same interview, gary kelly of southwest made it clear that biden's mandate s is the onlyrcing his employees to get the shot or be fired. >> the vaccine mandate obviouslt is controversial, and it is not anything i wish for our company. this is a government mandate. it is a presidential order. and we are doing our best to comply with that. >> tucker: oh, it's a government mandate. that will be the same government that is ignoring its own laws, ignoring federal immigration law and allowing the rest of the world into our country unchecked. that is a violation of the law. the biden administration is a batting illegal behavior. so for the ceo of a company tois say "we must follow the law"av s directed by an administration that is violating the law on a mass scale, is a little much, and everyone knows it. lying, lying, lying. well, governor of texas, greg abbott, just banned vaccinb mandates in his state. southwest is headquartered in texas. and yet, southwest and now american airlines and ibm have announced they will defy meg abbott's ban. oh, they are more afraid of joe biden

his name is gary kelly, he is under an awful lot of pressure, so maybe he had to lie, but he definitelynt on tv today and said oh, no, it had nothing to do with biden's vaccine mandates. watch. >> seen a lot of people invest in this idea that it somehow related to vaccine mandates. >> there is just no evidence of that. as i said and as captain murray said, our people are working very hard. they are doing a great job. i am very proud of them, and especially when we get into difficult situation like this, they are also delayed, they are also ending up in places that they didn't expect, so now our people are doing a phenomenal job. >> tucker: your people are doing a phenomenal job standing up for what they believe in the face of tyranny. but to say there is no evidence this week the result of a direct reaction to joe biden's vaccine mandate is a lie, and you know it's a lie if you know anything about the company you've gone, and for that list does. later in the same interview, gary kelly of southwest made it clear that biden's mandate is the only reason he is forcing his employees to get t

unofficial sickout by the pilots at southwest airlines they haven't been happy for sometime and gary kelly will talk about that tomorrow what's interesting is looking at the relationship between southwest and the pilots how much it has changed let's say of the six or seven years if you said united airlines with terrible relations with the pilots would have better relationships with the pilots' union than southwest people said no way they need to work on that. that's a case for sometime and again not an official or unofficial sickout from the pilots causing the cancelations. >> phil, thank you so much good the see you. >>> next, goldman's jeff currie breaks down the commodities and how high oil could go. you are watching "closing bell" on cnbc. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein bars and shakes. for every fitness routine. this halloween, p xfinity rewards is offering up some spooky-good perks. like the chance to win a universal parks & resorts trip to holly

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check out free concerts at gary kelly square. -- dear a del website, > >> the warriors opened the preseason and the bay area sports hall of fame welcomes in a new class. wh woin recog isorth a job fos jesus took over his dad's roue when he retired after 47 year. now he's showing a new generation what recology is all about. as an employee-owned company, recology provides good-paying local jobs for san franciscans. we're proud to have built the city's recycling system from the ground up, helping to make san francisco the greenest big city in america. let's keep making a differene together. let me get this straight. you've got an a.i. strategy to deliver a better customer experience, that will help us retain our customers and even grow our business? how much is this going to cost? here's the figure. 59. 59 million? no, five9. as in five9 intelligent cloud contact center. they won't just power our transformation. they'll fund our transformation. yes, yes! exactly! what are you waiting for? ♪ ♪ every day in business brings something new. so get the flexibility of the new mobile service designed

kind of scared this morning that our flight was going to be canceled >> reporter: southwest ceo gary kelly >> obviously, i really feel for our customers. >> reporter: again today blamed the trouble on weather-related airport ground stops in florida last friday >> by the end of the day we had significant numbers of airplanes and flight crews that were totally out of position >> reporter: but while other airlines recovered quickly, it took southwest until today to catch up. through the summer many airlines struggled to handle the unexpected surge in passenger traffic >> it seems like southwest was likely, you know, at the max capacity in their schedule with very little margin for error and a lot of their flights do go through florida. >> reporter: both southwest and its pilots union deny suggestions that pilots caused the slowdown to protest the federal vaccine mandate. though southwest pilots have asked a court to temporarily block the mandate. american's pilots union says 30% are still not vaccinated while 84% of delta's employees and 99% of united's are vaccinated between airline staffing

. >> reporter: that's southwest's ceo gary kelly. >> the company has made a decision to cease to overbook going forward. >> reporter: yet southwest continued to bump passengers. in 2019 southwest involuntarily denied boarding to 2500 people. it blamed the boeing max, the troubled plane the faa had grounded. today southwest max planes are flying again, so has it stopped bumping? no. we just reviewed the monthly report card the government gives airlines. it shows southwest bumped 1314 paying passengers between may and june enough to fill of its airplanes. some people sounded off on social media. >> southwest bumped me from my flight. >> terrible service. >> reporter: so we asked southwest what's going on. it insists it has discontinued the practice of overselling flights. but what about those 1,314 people involuntarily denied boarding. southwest explained that it dealt with lousy weather this summer. during periods of irregular operations when flights are cancelled, involuntary denied boardings may occur in circumstances as remaining flights become overbooked. during that same stormy period

the ceo gary kelly says the delays began on friday and then took several days to recover. airline said the bad weather and air traffic control issues initiated the problems that were worsened by its own staffing shortfall. we're back with more for you right after the break. >>> all right. giants fans, all we need now is one more win, and it is on to the league championship series. you know the giants came out on top in the tightest of games last night. against the dodgers in the playoff series. >> anthony flores was there and has the blow-by-blow from a windy dodger stadium. >> i'm anthony flores at dodger stadium where the giants are on the verge of taking this series and ending the dodgers season. let's check out the highlights from game three at dodger stadium. check out the palm trees. the wind a big factor in this one. so windy, the foul pole was swaying back and forth. the giants starting pitcher spent five seasons in l.a. and helped the doerges win the world series last year. runners on first and second in the fouring the, he gets out of a jam by getting pollack. ev

southwest east ceo gary c. kelly joins us live. >>> submarine secrets. the navy engineer and his wife caught up in an fbi sting trying to sell technology to a foreign country set to face a judge for the first time this morning. >>> breaking overnight, super bowl winning coach jon gruden leaving the raiders after reports about a trove of emails with racist, homophobic and misogynistic comments. the reaction to the nfl shake-up this morning. >>> miraculous homecoming. the little boy lost in the woods for three days back with his mother this morning and the moment she met the good samaritan who found him, only on "gma." >>> an abc news exclusive. the mother who jumped down a manhole to save her 2-year-old son. >> i need someone to come. there's an open manhole. >> she's telling her story for the first time. >>> scam u. the new warning about qr codes found everywhere from restaurants to retlers to flyers. how scammers could be using them to steal your personal information and your money. ♪ what a feeling ♪ >>> and what a feeling at fenway. >> here comes sant

i'm saying >> you talk me that to not -- i used to not let the facts get i into. >> this is what gary kelly had to say he's encouraging all employees to get vaccinate d there's a lok at the can lace as of just a little over an hour ago. is that back they -- did they overstretched? i'm hearing -- >> some favor art. eunice was reporting that there have been some favorable rulings? >> i think they see went too far. >> they have a big real estate issue, some of the numbers when it comes to. >> we could have a bass revo revolution >> this haircut is way too short. >> it is does your hair grow back i don't know >> that was a simple yes >> no, i think it looks okay >> i do feel like the coach of detroit lions. >>> coming up we're going to talk about changes at the top of kkr. we'll give you the details in just a minute. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, eve

the ceo gary kelly is on gma debunking rumors that it had sunk to do with vaccine mandates. >> the vaccines controversial, not anything that i wish for our company. this is a government mandate, a presidential order, and we are doing our best to comply with that according to the deadlines. we are not going to fire any employees over this. we are urging all of our employees to get vaccinated. if they cannot get vaccinated, we are urging them to seek an accommodation. jobina: it's a much different stance from how united is approaching its vaccine mandates for all employees. the chicago carrier said it was preparing to fire hundreds of workers refusing to be vaccinated. >> thank you. kumasi: passengers on the majestic princess waking up in san francisco this morning. that was the warm welcome they got when they first boarded in l.a. it is the first cruise ship to visit san francisco since the pandemic started. this is welcome news for the cities tour is an industry. it relies on guests getting onshore and spending money. >> every lever the city can turn to get people back in the city, enjoyin

because i'm not happy with southwest management nonetheless a lot of questions for southwest's ceo gary kelly he'll join us tomorrow morning on "squawk on the street." you don't want to miss what he has to say they'll have to address it if they're short on staffing right now, if they couldn't anticipate it ahead of this weekend, are they going to be prepared someone thanksgiving or the christmas holiday? these are important questions the airline will have to tackle. >> not only that, with consumers's heads, this could be the first time they've been able to see family for quite some time if they're going to trust southwest to get them where they want to do when they want to get there, or are they going to say, i'll go to some other airline. >> i think the answer is this, melissa. if you were in a market, saying chicago, you have a number of other options than southwest, you may think twice, but in a lot of parts of the country, in many markets, southwest is the predom instant airline at the end of the say, you sit there and say, who is giving me the most choices the best offer out there if it'

in fact ceo gary kelly says it is not true even though he is not a fan of the vaccine mandate.he pilots union is opposing the mandate in court but they also say all of these operational challenges were not a result of that. still a hectic couple of days here at midway and airports across the country for people flying southwest, liz. elizabeth: grady trimble good to see you, thank you so much. look who is back with us now, house oversight ranking reform member, congressman james comer. always great to have you on. we like your insights. could the constitutional fights over vaccine mandates head to the supreme court? >> i hope so. i have confidence in the supreme court and i said from day one federal mandates would do more harm than good and we're seeing that. with respect to what southwest was saying. i was at the fort lauderdale airport, many airlines had footprint, but only southwest was canceled. when they say it was the weather. i can speak with confidence that it wasn't the weather with american or spirit, it was clearly southwest. people at southwest airlines are frustrate

today on ""squawk on the street" gary kelly, who's been at the head of the country 15, 20 years he willing at 9:30 a.m he'll talk about everything that david just talked about and try to get some trust back into southwest flyers who have been facing a really, really tough couple of days, certainly stuck at the airport that at 9:30 a.m. eastern time >>> in the meantime a check on this morning's other key headlines including the sudden resignation of jon gruden at the top of the las vegas raiders. >> good morning. let's start with texas residents who won't be mandated to roll up their sleeves to get vaccinated against covid-19 governor greg abbott entered an order from preventing any businesses from imposing covid-19 vaccinations on employees or companies >>> and standing up for david chappelle. in a staff memo obtained by variety but not independently verified by nbc news, netflix defended the chappelle's title, saying he's one of the top comedians today and said the platform would not remove his special. >>> jon gruden out as the head coach of the las vegas raiders he resigned over repo

airline ceo gary kelly was on gma debunking rumors that had to do with an employee vaccine mandate. e mandate obviously is controversial and it is not anything that i wish for our company. this is a government mandate. it is a presidential order. we are doing our best to comply with that according to the deadlines that have been set. we are not going to fire any employees over this. we urge all of our employees to get vaccinated. if they cannot, we urge them to seek an accommodation. karen: it is a much different stance than how united airlines is approaching its vaccine mandate for all u.s.-based employees. the chicago-based carrier said it was preparing to fire hundreds of workers who refused to get vaccinated. larry: our new show and new beginning for san francisco's -- home to beach blanket babylon for 45 years. the 108-year-old leader has remained dark during the pandemic but tonight, embry opens with a show called "dear san fra described as a mini cirque du soleil. tonight's performance is sold out. karen: time for one last check of the weather. spencer: it is still windy. we h

gary kelly is on gma debunking rumors it had to do with an employee vaccine mandate.>> the vaccine man's day -- vaccine mandate is controversial, not anything that i wish for our company. this is a government mandate, a presidential order, and we are doing our best to comply with that. according to the deadlines that have been set. we are not going to fire any employees over this. we are urging all of our employees to get vaccinated if they can get vaccinated. we are urging them to seek an accommodation. >> it's a much different stance than how united airlines is approaching its vaccine mandate are all u.s.-based employees. the chicago-based carrier said earlier this month it was preparing to fire hundreds of workers who refused to get vaccinated. >> thank you. >> thank you. [cheering] [laughter] >> they are happy. they are waking up in san francisco this morning. this was the warm welcome when they first boarded the ship in los angeles. it is the first cruiseship to visit san francisco since the start of the pandemic. the return is welcome news for the cities tour's

this morning, the airline ceo, gary kelly, denied the delays had anything to do with the vaccine mandatell of our employees to get vaccinated. if they can't get vaccinated, we're urging them to seek an accommodation. >> sam brock at miami international airport for us. sam, what's going on there this morning? >> you talked about all the thousands of people affected. let me throw one of the thousands of statistics at you, yasmin, which is 100,000 people from start to finish so far an estimate, were affected by delays or cancellations. yesterday, it was more than 50% of all southwest flights nationwide. if you check this morning, right now, they're at 9% and holding strong. let's hope that it stays that way. right now it's a couple hundred delays, but not the magnitude that we saw previously. southwest, reaching out directly to customers yesterday through its latest statement and saying weather and other external constraints that were driving this. and as you mentioned, other airlines did not affect the issues. why did southwest experience the issues? there was a domino effect with updated

gary kelly said there's hopes that the schedule gets back on track. >> we have moderated the flight schedulere definitely steps under way to mitigate the issue we were thinly staffed coming into the weekend and certainly didn't help trying to recover. >> coming to president biden's vaccine mandate here's what he had to say on that. >> we're encouraging them. we're offering the equivalent of two day's pay to turn in the vaccination card that compensates them for the time it takes and any aftereffects from a vaccine. so it's an encouragement and not any kind of a stick, if you will. >> southwest declining over the past couple days and the sector is weak over a couple of weeks. >> southwest under performed and the point is made everywhere with an economy with a huge comeback in demand that's colliding with constrained labor supply and the efforts the protect margins and tried to run lean and challenging just in time inventories and very tight yieldmanagement on flights and things like that friction related to those things but yeah it is not as if -- southwest is down about 4% this week or somet

but gary kelly said october 4th, last week, they would go along with the vaccine mandate it brought a lot of ire from the pilot's union there because they said they weren't consulted on that, and it's a holiday weekend. so shutting down the flights on saturday and sunday, whoever's fault this is, it did have an inordinate impact because it's the holiday weekend. >> a miserable situation for people that are trying to get somewhere. any time i've been cancelled, i can remember -- i've told this story to my wife and kids recently back in college, i wanted to come home, big christmas things planned, and it didn't happen. it's like you can't believe it i was in denver, stuck, had to stay in a hotel. you're stuck you want to be there so badly and it's not going to happen for you because of this. and so you take 1,800 flights times however many people are on there where they had places for whatever reason needed to be there and it's not good. it drives home the point that like 1,000 miles is a long way and it -- we take it for granted. we walk on the plane, walk through one door in one place

ceo gary kelly says it is not because of pilots protesting the vaccine mandates but it does raise theether mandates and businesses can coexist in this economy. this creates such a trust problem just before the holiday season. are you going to book to see her friends on southwest? you will never get there. stuart: i out into the question but many people will say not doing it. come back in, todd. i to talk about the numbers we will get you in one hour. the latest job openings, the jobs report. why do you think so many people are staying home? >> reporter: free money started this problem but at this point it goes beyond 3 money from the biden administration. that allow people to see they could get by unless and when it is coming free from the government but there's the subset of able-bodied workers who let me be clear about this, who don't have the same concern as immunocompromised individuals when it comes to the virus. these individuals are saying i'm too scared. i understand if you are in an older age category or immunocompromised but if you are in able-bodied healthy individual, thin