Southwest Airlines CEO, Gary Kelly, forecast the carrier would continue to show revenue growth in 4Q2010 and has momentum building up for year-on-year improvement 1Q2011. CFO Laura Wright stated that while bookings for the remainder of Oct-2010, as well as Nov-2010 and Dec-2010, “look strong”, the carrier’s year-on-year comparisons for Nov-2010 and Dec-2010 may be more difficult due to its CASM acceleration last year (Seeking Alpha, 21-Oct-2010). She added the carrier may have more difficult year-on-year capacity comparisons for 4Q2010. However, the CFO noted Southwest’s bookings, price and sequential revenue trends for Oct-2010 so far “indicate sustained momentum of our year-to-date revenue results”. Southwest expects another year-on-year increase in revenues for 4Q2010, but at a lower rate to 3Q2010, as the carrier reported USD24 million in ancillary revenue in 4Q2009 versus USD12 million in 3Q2009 for the same initiatives.
Southwest Airlines expects momentum to continue for next two quarters
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WOW air: the fast-growing Icelandic LCC starts new widebody services to US West Coast
The rapidly growing Icelandic LCC WOW air began a new chapter in its short history on 9-Jun-2016. Just over four years after its inaugural flight – from Reykjavik to Paris on 31-May-2012 – the airline has launched its first widebody service from Reykjavik to San Francisco. This route will be joined on 15-Jun-2016 by a Los Angeles service, also deploying A330-300 aircraft and taking its North American network to six destinations.
With 20 European destinations it is developing a role as a provider of low cost trans-Atlantic connecting services to sit alongside its point-to-point offering. In this respect it is providing growing competition to its larger compatriot Icelandair, which is also growing fast (and profitably).
However for now, at least, there appears to be room for both: Icelandair is not present on 12 of WOW air's European city pairs, or on three of its North American routes. Certainly the North Atlantic needs new competition, and both Icelandic airlines are helping to provide it.
Air France-KLM: long haul low cost airline could be part of new CEO's vision as French Blue enters
Air France-KLM chairman and CEO, Jean-Marc Janaillac, who took charge in Jul-2016, has talked about the possibility of launching long haul low cost operations (Bloomberg/luchtvaartnieuws.nl, 20-Sep-2016).
If Air France-KLM were to enter this segment it would be the second of Europe's big three legacy airline groups to do so, after the Lufthansa Group. Ironically, there is no long haul low cost competition to Lufthansa in Germany. By contrast, IAG faces more such competitors in the UK than either of its two major rival groups in their largest home market, but currently has no plan for such an operator.
Air France-KLM management told analysts on a conference call in May-2016 that it was sceptical about the sustainability of year-round profits for long haul low cost. However, new competition has prompted Mr Janaillac to look more closely at this market segment. Since Jul-2016 Norwegian has commenced trans-Atlantic long haul operations from Paris CDG. In addition, since Sep-2016, the new-start long haul LCC French Blue now flies on routes to the Caribbean. Mr Janaillac is expected to report on his strategic vision for Air France-KLM in early Nov-2016. Labour relations will be crucial to the group's development – not least in the area of long haul low cost.