Southwest Airlines believes it can attain positive RASM and flat cost growth in 2018

Southwest is joining the US majors Delta and American in forecasting positive unit revenue growth in 4Q2017, and the country’s largest domestic airline also believes it will achieve a positive performance in that metric in 2018 as it works to attain a flat unit cost performance for the year.

The company has not finalised its capacity plans for 2018 but is declaring its ASM growth will fall below 5.7%, and range from 3% to 4% in 1H2018. Southwest’s international expansion is likely to slow in 2018 as the airline focuses on preparing for new service to Hawaii. Details of Southwest’s plans for Hawaii remain scant, but the airline is hinting it could launch inter-island service at some point in the future, which would spur a significant market disruption in that region.

Southwest has not escaped pressure from discounting in the US market place, but the company is experiencing some improvement in 4Q2017 as yields appear to be trending in a more positive direction.

This CAPA Premium Analysis article is 1,281 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com