Southwest Airlines’ big problem is bad news for leisure travel

Airlines have to play the long game when it comes to planning routes, personnel and equipment. You can move an aircraft from one airport to another or change the frequency of the route, but you cannot run new aircraft quickly.

That means if you want to add capacity, you have to make those decisions years ahead. The problem — and it’s a big problem for Southwest (LUV) – Get a free report — is that the covid pandemic has changed the equation.

The airline, like its competitors, had to go into survival mode, and that meant pausing pretty much every release you could. That didn’t include layoffs, Southwest never had any layoffs, but it did mean some employees were incentivized to take early retirement.

Leave a Reply

Your email address will not be published. Required fields are marked *