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Southwest to cut 190 flights

Old 08-26-2008, 09:03 AM
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Che Guevara
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Default Southwest to cut 190 flights

DALLAS - Southwest Airlines Co., which had resisted the kinds of capacity cuts being made by other carriers, will eliminate nearly 200 flights early next year as it struggles with high fuel costs and a weakening economy.
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The move raised doubts about the company's publicly stated goal of growing modestly in 2009 despite the airline industry's troubles.

Now, Southwest will cut 196 flights while adding only six new ones in its schedule that takes effect Jan. 11.

That is nearly 6 percent of the airline's daily schedule of close to 3,400 flights.

Southwest spokesman Chris Mainz said Tuesday that some of the eliminated flights, which span Southwest's nationwide network, could be restored later in 2009. Late winter is typically a slow travel period.

"This is a response to a slower traffic period, and we're giving ourselves some operational flexibility in the winter months," he said.

Southwest is better insulated than its rivals from high jet fuel prices because it bought options to get most of its fuel at below-market prices. Still, the airline's fuel bill has been rising, eating into margins at the most consistently profitable U.S. carrier.

Chairman and Chief Executive Gary Kelly said in June that the Dallas-based low-cost carrier hoped to grow modestly in 2009. But he tempered that outlook by saying the expansion plans could be scrapped if oil prices remain high or the economy weakens.

At the time, Kelly said Southwest still planned to add 14 new planes next year. Mainz said Tuesday that new planes will be added while older aircraft are retired, keeping the airline's fleet "relatively flat." Southwest has about 530 jets, all Boeing 737s.

Southwest is the only major U.S. carrier to earn a profit in the first half of the year — it has not lost money in a quarter since early 1991. Like other carriers, Southwest has been raising fares to offset rising fuel prices, and Kelly has said more increases are likely.

Southwest serves more than 60 U.S. airports and is not leaving any of them under the new schedule. But it is ending some nonstop service, such as that between Nashville, Tenn., and Oakland, Calif. The carrier is mainly reducing the frequency of flights on routes across its network.

The airline will add six new flights; round trips between Phoenix and Burbank, Calif., Las Vegas and Orange County, Calif., and Baltimore and Orlando, Fla.

Southwest's reduction of nearly 6 percent is still far smaller than capacity cutbacks at other U.S. airlines.

American Airlines, the nation's largest carrier, is cutting about 8 percent of capacity after Labor Day — and up to 12 percent of its domestic flying. United Airlines expects to cut domestic capacity about 16 percent, and Delta, Northwest and Continental also have announced cuts.

The airlines are grounding planes and laying off thousands of workers to save money in the face of higher fuel bills.

The Air Transport Association, a trade group for the big carriers, expects U.S. airlines to spend $61.2 billion this year on fuel, up from $41.2 billion last year.

Southwest shares rose 8 cents to $14.89 in morning trading.
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Old 08-26-2008, 09:20 AM
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I just had a Southwest guy yacking in our jumpseat (the whole flight) about how Southwest is going to be hiring all year next year and they are in better shape than ever. Looks like yacky yack was wrong.
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Old 08-26-2008, 09:26 AM
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190 Flight seems pretty modest, does anyone know if this will result in any job losses?
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Old 08-26-2008, 09:30 AM
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190 flights out of 3,400 flights? That's not that bad. I think they are doing the right thing here. They are just cutting back on some routes and adjusting the schedule for the fall/winter season. Southwest will remain profitable!
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Old 08-26-2008, 09:32 AM
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Originally Posted by UnlimitedAkro View Post
I just had a Southwest guy yacking in our jumpseat (the whole flight) about how Southwest is going to be hiring all year next year and they are in better shape than ever. Looks like yacky yack was wrong.
I am in no way affiliated with SWA or have any vested interest but they are running new hire classes. I personally know guys that are going there. How many other airlines can you say that about?
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Old 08-26-2008, 09:36 AM
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Originally Posted by UnlimitedAkro View Post
I just had a Southwest guy yacking in our jumpseat (the whole flight) about how Southwest is going to be hiring all year next year and they are in better shape than ever. Looks like yacky yack was wrong.
I don't think "yacky yack" was wrong at all! SWA is in a great position to expand, but as always will only do so if it makes good business since. I wouldn't bet against SWA in Vegas unless the odds were stacked and I had money to lose.
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Old 08-26-2008, 09:56 AM
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Originally Posted by UnlimitedAkro View Post
I just had a Southwest guy yacking in our jumpseat (the whole flight) about how Southwest is going to be hiring all year next year and they are in better shape than ever. Looks like yacky yack was wrong.

Hiring 550 this year with classes scheduled every month through the end of the year. People just love any shred of bad news about Southwest. Human nature I guess.

S.B
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Old 08-26-2008, 10:06 AM
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I dont think thats it, but I know arrogance is a contributing factor...
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Old 08-26-2008, 10:16 AM
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I don't see why anyone would want a top paying company to go down. I also don't think this means anything significant for SWA. Some of the routes deserve to lose a flight or two.
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Old 08-26-2008, 10:19 AM
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My only concern is that if they are cutting, when are we all going to see further cuts?
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