Southwest Airlines finally exceeds return goals with fuel windfall; but others want to share in it

Southwest Airlines capped a strong 2014 by posting a 21% return on invested capital (ROIC) - it best performance in that metric since 1981. It is a welcome performance for Southwest after the company missed its return goals for the previous two years.

The airline also continues to see solid demand, but like United, is monitoring corporate travel trends in the energy sector as a result of rapidly falling fuel prices. Southwest is also predicting flat passenger unit revenue growth for 1Q2015, which is in line with the estimates of its rivals United and Delta.

A sharp decline in oil prices has resulted in Southwest projecting roughly USD1.7 billion in fuel expense savings in 2015. But unlike some of its competitors, the airline is not rushing to define how it intends to apply the savings. As the rising chorus of "me too" gathers volume, Southwest looks likely to be confronting the same issues that its major peer airlines are beginning to.