HuronIP

From the Company website last week. Sounds like it's just part of the plan.

08-21-2008 | Shouldering a New Schedule

You may have noticed some recent changes to your favorite early morning or late-night flight. Well, in addition to seasonal changes, Southwest's Schedule Planning Team has implemented "shoulder cuts" to our flight schedule.

Shoulder cuts are slight frequency changes within a schedule that last for a just a few weeks. They help curb unproductive flying, because they're typically used on early or late flights that are not forecasted to go out full. None of the affected markets will lose all the flight frequency; most will only see a small change. But the main advantage to implementing shoulder cuts is that during times of lower demand, we're able to save fuel and reduce unproductive flying. So if a Customer asks about a missing flight, it may not be gone for good. Shoulder cut flights will often come back into service when demand increases.

imlars

Some think a 4th qtr profit would be a miracle even for SWA.

One influential analyst, Jamie Baker of JPMorgan, said a fourth-quarter loss is “likely” because of expensive fuel and the tendency for other costs to rise late in the year. Only an improbable rise in revenue will avert a loss, he said.

Obviously not a good sign if SWA goes in the Red. Everybody else must be "blood red".

imlars

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sailingfun

SWA reducing flights is unusual. Their business plan relies on expansion to keep employee costs low. SWA however is also now in the same situation as a lot of other airlines. As their fuel hedges run out that have to increase revenue. If they are decreasing flights it means they feel that they can not increase revenue enough to cover their coming fuel costs without reducing loads. One issue most low cost carriers are dealing with is the "SouthWest Effect". SWA is well managed and keeps costs very low. They could then offer flights in markets with little ongoing traffic and stimulate their own traffic via the low fares. With fuel costs so much higher even the lowest cost carriers like Airtran and SWA can no longer self generate traffic at fare levels that are profitable. All higher yield point to point markets are saturated with flights now. SWA will do great however I would look for major changes in the business model the next few years and much slower growth rates.

cargo hopeful

Very true, only 2 that i know of, Virgin America and Allegiant.

mulcher

NOOOOO the hedges are running out...the sky is falling. I think something else is up. Maybe three groups are in section six talks. Remeber this year we were only supposed to hire 150. Nobody here knows what GK and his crew are doing or thinking. We will know that after the fact.

KC10 FATboy

I was going to post this earlier when I had read it ... but I assumed I would just be called a SWA hater.

Southwest's traffic falls in July - Nashville Business Journal:

Could the decrease in SWA ridership have anything to do with these cutbacks?

-Fatty

MILPILOT17

I went thru an airport the other day and it was empty; everyone has stopped flying. The sky is falling! If you think SWA is in trouble then I have some land in florida you should buy.

Fly Gal

We may operate fewer flights, but I dont think we're going to loose much flying if any. Some of the short haul flights with low loads (DAL-MAF for example) will go away, but they will be replaced by longer stuff out of say Denver. I think out loads out of there are something like 90%.

I did hear the other day, that we are predicting 200 more new hires this year and another 600 in '09.

cfii2007

There is land in Florida??