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Southwest forecasts no recovery in the near future

16-Jul-2009

Southwest Airlines CEO, Gary Kelly, stated in Jun-2009, “there is no clear evidence” the economy is about the recover, adding it is “crazy to assume and bet on things improving anytime soon…The green shoots are pale green at best.” Business class travel remains weak for the LCC, which, it stated, is reducing traffic on shorter routes and sales of last-minute, full fare tickets. [2176 words]

Unlock the following content in this report:

Subheadings:

  • Cutbacks continue while stage length increases
  • Estimates 9-10% decrease is PRASM
  • Remains committed to partnership with Volaris
  • Outsources some heavy maintenance to Aeroman
  • Launches services from Milwaukee and New York
  • Launches LaGuardia services
  • Boston and Tampa next…
  • Machinist union ratifies new agreement
  •  Launches fees for onboard Internet access
  • Launches Sprint TTY and video relay access to customer service
  • Launches biggest fare sale in 13 years
  • B737-300 inspected after emergency landing

Graphs and data:

  • Southwest monthly passenger traffic (millions) and load factor (%): 12 months to 30-Jun-08 vs 12 months to 30-Jun-09
  • Milwaukee Mitchell International Airport domestic capacity share by carrier (week commencing 13-Jul-09)
  • New York LaGuardia Airport domestic capacity share by carrier (week commencing 13-Jul-09)
  • Southwest destination map: Jul-2009
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