Is Southwest Airlines Losing its Magic?
Skift Take
Southwest just had its first round of compulsory layoffs in its history. What does that mean for the low-cost pioneer and the industry as a whole?
In this week's episode, Gordon Smith is joined by Airline Weekly's Jay Shabat and Skift airlines reporter Meghna Maharishi. Part one is focused on the big picture trends as U.S. earnings season draws to a close. In part two, the trio discuss the first involuntary layoffs in Southwest history and assess their wider impact on the airline.
This episode is presented by Riyadh Air.
Listen to This Podcast
Apple Podcasts | Spotify | YouTube | RSS
Takeaways
- Among the major U.S. airlines to report so far, the industry saw a collective operating profit margin of 9% in Q4.
- Premium travel and international routes are driving growth for major carriers.
- JetBlue faced challenges with disappointing earnings despite strategic changes.
- Fuel prices significantly influenced airline earnings in Q4.
- Corporate travel demand is rebounding, benefiting major airlines.
- The performance of low-cost carriers varied, with some showing signs of recovery.
- Spirit Airlines' bankruptcy raises concerns for the low-cost segment.
- Southwest Airlines recently announced layoffs affecting 15% of its corporate workforce.
- The layoffs mark a significant shift in its corporate culture.
- The airline industry is navigating a complex landscape of cost inflation and demand recovery.
Photo Credit: A Southwest Airlines Boeing 737 departing San Diego. Southwest Airlines
Up Next
The Airline Weekly Lounge Podcast
The Kings of the Caribbean
In part one, Gordon Smith and Jay Shabat examine the key players serving the Caribbean from the United States. In part two, we take a closer look at the latest financials from Lufthansa.
The Airline Weekly Lounge Podcast
The World's Most Profitable Airlines
With most of the key results in, we've a good idea of how the world's airlines performed in Q4 2024. Not everyone was a winner, but there was plenty to cheer about.
The Airline Weekly Lounge Podcast
The Day Southwest Airlines Changed Forever
Bags fly free has been in the airline's DNA for as long as anyone can remember. What does it mean for the airline when that’s not always true anymore?
The Airline Weekly Lounge Podcast
British Airways Is a Profit Machine
When the North Atlantic market is good, British Airways performs strongly. BA's spectacular numbers suggest something is going very right.
The Airline Weekly Lounge Podcast
Is India the World's Hottest Airline Market?
Gordon Smith and Jay Shabat set the scene for the upcoming Skift India Forum and preview the big topics ahead of interviews with the CEOs of Air India and IndiGo.