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Southwest Air SWOT: cost control key: millennials must be the focus

There is no argument that Southwest is among the most successful airlines in the history of global aviation. Its longstanding profitability is unmatched, and its favourable customer sentiment has endured throughout the inevitable cyclical environment that both US and global airlines face.

But at times Southwest can be a slower performer: cost control is key, and adapting its brand to reach a larger millennial audience than do its peers – especially in the realm of technology. With the ever-growing importance of the millennial traveller, the airline needs to be attuned to that age set’s preferences in order to continue exploiting its all-powerful brand, especially as it continues to contemplate additional international expansion.

Southwest also faces the age-old challenges that plague the majority of airlines – maintaining cost efficiency and favourable labour relations.

This report considers Southwest’s strengths, weaknesses, opportunities and threats.

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