Southwest Airlines warns it may need job cuts

Southwest Airlines Chief Executive Gary Kelly has told employees the airline needs a dramatic jump in passenger demand or it will be forced to take new steps to reduce staffing.

Employees face a Wednesday deadline on whether to participate in a voluntary incentive program to leave the airline.

"Although furloughs and layoffs remain our very last resort, we can’t rule them out as a possibility obviously in this very bad environment," Kelly said in a message to employees.

"We need a significant recovery by the end of this year - and that’s roughly triple the number of passengers from where we are today."