Southwest's capacity cuts may mean higher fares for some routes
Posted by Tracy Stewart on Wednesday, March 24, 2010
As mentioned earlier in the week, Southwest's latest 3-day sale was pretty underwhelming stuff. The only real standout deals were on shorter routes. We imagine this might have something to do with recent capacity cuts, a first for Southwest Airlines. And now comes word that further cuts are in the works for summer. How drastic are we talking here? According to a recent post by BTNonline, as of August 15, the carrier will begin "reducing systemwide daily roundtrips by 58, or about 3.4 percent, from its 2010 peak summer schedule. Though Southwest said some of the changes are seasonal, the cuts reflect the carrier's commitment to newfound capacity discipline and a more dynamic network planning strategy." As airlines struggle to stay in business, or in the case of Southwest, actually profitable, this sort of fine-tuned seasonal schedule switcheroo is something we'll probably be seeing more frequently, and from other carriers as well.
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