we'll bring in southwest air's chairman and ceo, gary kelly before i bring in gary, he had a loss andt is not southwest's way, which means this industry is doing something that i'm sure he has not seen. gary, i will give you the floor. you do not have losses that's something that southwest doesn't have >> well, yeah. good morning, jim. these are obviously extraordinary times. and we had a great first quarter going. we had a strong january, strong february saw no signs of covid-19 issues until the end of february. and, you know, the drop in bookings, the increase in cancellations, the drop in traffic in march was breath taking so here we are you know, the good news is that southwest is very well prepared. we had excess liquidity coming into the crisis. we had the lowest level of debt to total capital in our history. over $10 billion of unencumbere airplanes available. you have to be prepared for the unexpected and this meets that definition you know, this is a real challenge. >> you have 20% load factor and estimated daily cash burn of 30 million, 35 million. what can you make so we al

don't forget, gary kelly coming up at 9:30 on "squawk on the street."t want to miss this first on cnbc interview. brian, over to you >> all right, phil lebeau thank you very much. oil is under pressure. everybody is saying it's storage, lack of storage causing oil to go down that's correct there's two other things to watch today. it's not just storage. number one, the cme changed their margin requirements a little bit in other words, i don't want to get too wonky, if oil goes below $10 a barrel it could trigger margin calls, 1,000 barrel contracts, that could accelerate selling, cause more margin calls. you get the picture. yesterday, s&p and dow jones rolled completely out of the june contract to july, just like the uso etf. so two things at play here, margin calls and this rolling out of the june contract, which could cause oil to go negative of that i'm positive joe? >> thank you, brian. let's get to cnbc headquarters, jim cramer is listening in we don't have a lot of time, jim. i know you've been talking about oil and oil stocks >> yeah. i think the

southwest airlines ceo ys he's helping employees will accept pay cuts instead of job losses als gary kelly said southwest. it could be a dramatically smalleand different airline if things don't improve by july ice cap says it's suspended rent payments for shuttered stores. it was in alks with landlords to defer payments, change lease agreements wih some cases terminate this lease is and permanently close the stores gap also sayit may not survive. it doesnt have cash in months live from new >>we're back time now 7.22 a hoital in tracy has a new way of cleaning its rooms to help reduce the spread of coronirus as kristi gross shows us the hospitals using disinfecting robots. >>that are tracy community hospital is using ge killing robots to keep theirfacility sanitize says the tree covid-19 and worth the rst one that we know and our area to have this hospital ceo david thompson says this guy trump surface idc robots are just another toolin the fight against coronavirus in other hospital infections. yoturn the unit on it will disinfect the bathroom of the. patients a roomy the 3 wers work in ul

of course, not everything can reopen for example, say i ask gary kelly, the c.e.o.southwest air, why more people aren't flying >> people ultimately, if they're going to travel, they need to have something to be able to do when they get there. so disney world needs to open back up. restaurants need to open back up so you have those kinds of things >> he is so smart. some people we really like i know it's not about friends. kelly tells it the way it is as we lift the lockdowns, maybe people start flying again. the stocks are running judging by the performance of stocks today there must be plenty people ready to go back to pre-covid past times if they would open up. second, it looks like some governors and possibly even our mercurial president genuinely believe this outbreak is about to run its course. we had a charter say that last week i think it's too optimistic. you can argue what happened with the spanish flu in 1919 -- well, it just ended, right that was good, right, just ended. but there were three distinct ways of the spanish flu before that it looked like it w

airlines wasn't included initially i think they're also working on this keep in mind, even if you're gary kelly of southwest airlines, the ceo, he's looking at a situation where even though they didn't have that much debt going into this, they're burning through cash we estimate probably $30 million, $35 million a day, even their liquidity profile runs out by the end of the year if nothing changes. i think anyone in this industry, you know, is going to say, look, we're going to take the available cash and liquidity, especially if it's low cost, when we can. i think what we're going to see also is a lot of the carriers not only take these cash grants but also apply nor the loan program. that's about $25 billion in value. i think if we get that doled out to the industry on similar terms we'll see a little bit of equity dilution more importantly, this should give us liquidity to get us into 2021 for almost all these carriers the question becomes what's the right level of travel. >> brandon, thank you. >> thank you >> thanks for joining us >> up next, uninterrupted coverage of the final minutes of

everybody has to adapt i want to go on a -- think of something, gary kelly, don't just stand there and take it >> and as cowen says, it's not just the airlines, it's the airports people need to feel safe before they ever get to the gate and get on the airlines. guys, we'll take a break >> covid distributors, they're called airports. >> we'll get to verizon, amex, capital one, google, boeing and more when we get back. >>> the president talked about georgia's reopening yesterday at the briefing take a listen. >> i know a lot about economists, the answer is they have no idea i think i have as good an idea as anybody i think our economy will start to pick up substantially as soon as the states get open that's happening as we speak, it's actually very exciting. people are just -- just thrilled to see it. our country has to get back to work they want to get back to work. you see that, whether it's a demonstration or just in talking to people. they will go to get back to work and they'll get back to work very fast. >> we'll talk to the head of equinox later on this morning, jim, who is not op

what we have to do to sku secure liquidity and explore all of these options >> yesterday we had gary kelly on from southwest, good client of yours one thing he said was that a lot of people do want to fly but they don't know where they want to go to what it's come down to for people is i don't want to get sick, if i go on a plane i'll get sick the truth is you can wear a mask to defend yourself against your next-door neighbor, isn't it safer to be in a boeing airplane than it is to be in an office building in terms of air circulation? >> jim, you're making a great point. oftentimes the public confuses this because it looks like a confined space but the air on an airplane in the fuselage and in the flight deck gets replaced between every two and three minutes. the air that recirculates is filtered in that same cycle through a help pa filtepa filte. so that environment is an amazingly safe environment with respect to aerosol impacts with masks, you're correct that prevents that -- that proximity question so it really is a much safer environment than most of the public understands i do see th

up next it's our coronavirus special with my colleague gary hart in the meantime i'm sorry kelly in berlin thanks for. comparing the corona pandemic. where does research stand. what are scientists learning. background information and. our corona. 19 special next on d w. how does a virus spread. and when will. it just through the topics covered in the weekly radio show is called spectrum if you would like any information on the drawing of virus or any other science topic you should really check out our podcast so you can get it wherever you get your podcast you can also find us at. science. do you also feel like banging your head into the wall sometimes stay in bed forever just cry or plainly freak out because the bad news about corona have no way these are tough times to switch on. news look at your favorite web site and it's not a pretty picture more dead every day infections on the rise johns hopkins now counts more than 1000000 cases worldwide health care systems reaching their limits hope countries in lockdown friends and families are cutting off contact with each other . and it doesn'