Southwest Capacity Growth On Hold

Discussion in 'Southwest Airlines | Rapid Rewards (w/ AirTran)' started by garyst16, Sep 16, 2011.  |  Print Topic

  1. garyst16
    Original Member

    garyst16 Silver Member

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    "Southwest Airlines plans to keep next year’s capacity relatively flat with the 2011 level. The company might not increase flights even in 2013.


    The decision was based on surging fuel prices and economic weakness. Given steep rises in fuel prices, the company is taking cautious steps to counter weaker demand, softness in corporate travel trends and lower bookings due to high unemployment and the recent topsy-turvy in financial markets.
    Although Southwest has implemented eight fare increases since last December in response of fuel price inflation, it is now cutting capacity to handle sluggish demand.
    Southwest will trim its domestic flights next year but increase international voyages. The purchase of AirTran, earlier this year, boosted its flying capacity by 25%."
    http://finance.yahoo.com/news/Southwest-Capacity-Growth-On-zacks-201487649.html?x=0&.v=1
     
  2. milchap
    Original Member

    milchap Gold Member

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    A barometer decision for the industry.
     

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