Southwest Airlines Abandons Its Brand: Can Assigned Seats, Premium Cabin, And Redeyes Save Them?

Jul 25 2024

They need to take care not to lose the value proposition that does still distinguish them, and for which the market continues to value their business at a higher multiple than competitors, even as they work to provide a product that more people want to buy and to pay more for. But they also need to address their inability to sell small town and long haul flights through partners in order to continue to grow.

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Peak Season Trouble: American Airlines Braces For Flying Losses, Earnings Call Shows No Plan For Success

american airlines plane
Jul 25 2024

American Airlines profit was down in the second quarter. They’re crowing about record revenue, a lot of that is inflation, and they’re clearly not doing well – profit forecasts were revised downward significantly, and they are now saying they won’t earn anything in the third quarter which is traditionally good. It isn’t winter!

In fact, American Airlines will make money on its co-brand credit cards during the third quarter. That means it will lose money flying airplanes over the summer months. That’s insane.

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Southwest Launches Redeye Flights, Prepares For Assigned Premium Seats And Basic Economy

Jul 25 2024

They’re expected to offer extra legroom seats at the front of the cabin, in what’s being referred to as Love Cabin. These seats would be assigned. Southwest could offer blocked middle seats for sale in Love Cabin, along the lines of Frontier, where the airline sells a seat block to both the aisle and middle seat passenger as an option. And they’re preparing to increase fleet utilization – cheaper additional flying using current aircraft – by offering redeye flights for the first time. New union contracts now provide for redeye operations, and the airline no longer has to turn their systems off and on in a reset each night which required operations to halt.

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