Amid growing competition and a changing industry, Southwest Airlines has a new plan to lift its revenue.
But will it be enough to give the company the competitive edge it needs?
Southwest Airlines Plan For Revenue
Southwest Airlines presented a new outline, detailing how the company plans to boost its revenue and remodel the business…
Not only did they present an ambitious three-year plan, but they also welcomed Bob Fornaro, former CEO of Spirit Airlines…
To its board of directors.
Southwest Airlines aims to boost its revenue by overhauling many of its signature traits…
In favor of more competitive options…
AND CLEARLY, IT’S WORKING. THE COMPANY’S STOCKS RECEIVED A 5% BOOST WHEN THE NEW PLAN WAS ANNOUNCED.
The past few years have been difficult for all airlines, especially Southwest. Following Covid as well as the return to international travel…
The company knows that customers are looking for more perks and efficiency when they fly…
So their new plan involves improving seating arrangements…
Offering longer flights…
And keeping the policies they know work (like their two free checked bags).
Most notably, the new Southwest Airlines revenue plan involves eliminating its open seating model. Now, travelers will get their seats assigned when they check into the flight…
This new change was spurred by the discovery that the company lost customers due to the disorganization in the seating process.
Not only that, but Southwest is planning on having planes retrofitted to include more legroom in select seats.
As for their flights, Southwest knows that longer flights are more profitable flights…
So they’re partnering with Icelandair to take travelers on overnight trips.
What Do They Stand To Gain?
Not everything is going according to Southwest Airlines’ revenue plan, however.
The company also has to cut costs. Southwest Airlines is planning on shutting down its service in Atlanta, which would cut over 300 jobs.
Not to mention, the company has had to cut some of its more unprofitable routes due to aircraft delays from Boeing.
But, the three-year revenue plan is ambitious for Southwest Airlines.
IF ALL GOES ACCORDING TO PLAN, THE COMPANY STANDS TO GAIN $4 BILLION.
While these changes won’t happen overnight…
It’s clear that Southwest has everything they need to stay ahead of the curve.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
