Labour unrest grows stronger as Southwest Airlines continues to exceed most financial metrics

Southwest Airlines is leading a paradoxical existence - delivering a record financial performance while navigating significant labour unrest, illustrated by the recent decision of the airline's pilot union to staff and fund a strike preparedness committee.

It is probably not a coincidence that the pilots timed their strike preparedness announcement to coincide with Southwest's annual shareholders meeting, where the airline declared its intent to increase its quarterly dividend by 25% and initiated a USD1.5 billion stock repurchase programme.

Southwest has for quite some time been straddling the needs of increasingly vocal shareholders eager for increased returns and equally vocal labour groups seeking contracts that are similar to other airlines. It is an uncomfortable position - and Southwest is not entirely alone.