Southwest Airlines layers back short haul flying as it contemplates its long term network strategy

Southwest Airlines has drawn much attention during 2015 for the disruption that its massive expansion from Dallas Love Field has created in the overall Dallas market. The capacity additions and overall lower fares have resulted in Dallas emerging as the largest US market, with deterioration of pricing traction being a major feature.

The reality is that Southwest is capping off a few years of changes, including the full integration of AirTran, a de-hubbing of Atlanta, and the launch of Southwest-branded international flights from a new terminal at Houston Hobby.

As Southwest's domestic network continues to reach higher levels of penetration, questions are arising over the airline's network strategy going forward. Recently it has hinted the timing could be favourable to shore up short haul markets, after focussing on longer haul flying for the last decade and a half. Some of its planned new routes for 2016 reflect Southwest's willingness to test the waters on short haul flights.