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The Airline Industry: A “Lose-Lose” Business Model With Two Ways To Profit
“Pack your bags… it’s on.”
So says Southwest Airlines (NYSE: LUV) CEO Gary Kelly at the end of the company’s latest television commercial.
He’d better hope so. The once trend-busting airline, whose savvy fuel hedging strategy and cheap, efficient service helped it chalk up profits, even as its rivals in the airline industry were collapsing, is now coming off three straight quarterly losses, including a $91 million first-quarter drop.
And the company’s May traffic dropped 3.6% from May 2008 – the end of a five-month spell that saw the airline fly 2.2% less revenue passenger miles (which measures miles flown per paying passenger) compared…
12Jun2009 | Smart Profits Report | 0 comments | Continued
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