Most the majors (DAL at least) have offered CCard holders free bags already for years. SWA has what it always had, the opportunity to serve point to point service from shoulder cities/towns. SWA used to be king at marketing "direct" flts that stopped, but didn't change flt # so people all the time thought they were going non-stop, but were instead pit stopping at another city.

They wandered into the main conpetition of ATL with the other aquisition. Their strength is owning MDW, DAL, HOU, OAK etc. JMHO.

 

Meh not really. it's not like every flight has 100+ surfboards checked. Just look at how long Mesa's Go! lasted. CRJs are good enough if the price is right

 

Really nothing to be scared of. If you look at SWA financials as to pertaining of Rapid Rewards, its actually not as bad as you think. I'm only going by the 10K from 2024. The new one should be out soon with updated numbers. Loyalty revenue(R.R) was 15% of its total passenger revenue for 2023. For DAL it was a little over 7% of its total passenger revenue. SWA took in $2.1 Billion in revenue from Chase. Delta took in $6.9 Billion from Amex. Although Delta took in way more CC revenue, it also has an alliance. Obviously SWA does not. SWA just renegotiated their agreement with Chase. No info on what has changed but I bet you it will bring in more CC revenue with all the new perks I'm assuming. Delta, American and United offer more perks as a network carrier for sure but have a different business model all together. Credit card sign ups are not going to make SWA margins better as much as unbundling their product will. It no doubt helps but in the end the change in the cabin is where the money hopefully will be made.

Aquistions are not going to save SWA. As a matter of fact I think it would harm them financially. Especially right now when their about to spend billions this year upgrading 60 plus platforms and redoing the cabins. Most of that money is already being spent. They have the money to buy. Almost $9.0 Billion in cash with $11.0 Billion in treasury stock if need be. I'm pretty sure at some point they will but let the plan be implemented.

 

SW FA Union Rep teasing M/A

https://viewfromthewing.com/jetblue-...board-meeting/

 

Yawn


………

 

SWA Union rep would be the last to know about any M&A discussions.

 

Wouldn't buying JetBlue triple SWA's debt on the balance sheet while only growing the fleet by less than 30%? Why would anyone at SWA want that? I don't think SWA is interested in acquiring $3 billion in bonds at junk interest rates.

 

if I was Kirby and believed the premium long haul was going to hold up, I’d offer 1 free bag to everyone and the 2nd on the CC. Most don’t check 2 bags anyways.

my point is.. SWA kept the bags free because they need product differentiation and it’s very easy for another airline to take it away. Without that we are just a domestic airline with not much to offer. I think they are finally realizing this and are trying to do something about it. That might be too late but only time will tell.

 

United will never go back to giving a bag away for free. They are addicted to that reduced tax income that it generates as well as driving customers to their loyalty program and credit card.
Bags fly free is a huge tailwind to Southwest bookings and loyalty, but it is a headwind to revenue. It is pretty much the only way SWA can differentiate themselves in the domestic market in an industry where an economy airline seat is pretty much a commodity. SW is trying to get more people hooked on rapid rewards by giving, quite frankly, amazing credit card sweeteners to new sign ups. I think it is going to create an enormous revenue stream later on.
I am still cautious about the future, but this place is clearly being run more and more like a business that wants to thrive and less like an employment program for cheerleaders.

 

You also get nearly 4 billion in cash.