Southwest Airlines has a more upbeat view on the domestic market than its US rivals
Southwest Airlines is beginning to see some positive trends in the US domestic market place even as its competitors are indicating that domestic yields should remain soft during the summer high season for travel in the US.
Southwest has arguably been a contributor to the soft domestic yields through its massive expansion from Dallas Love Field that started in late 2014. Since that time the airline's competitors have cited the challenges created by the capacity additions and diluted pricing in the market.
But Southwest is maintaining a relatively positive outlook, driven by gains from a new credit card agreement that is helping to buoy its unit revenue performance. Aside from that boost, the airline believes yield trends overall have stabilised, and expects some slight improvement in 3Q2015.
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