Southwest Airlines Braces for 2nd Quarter
May 20, 2009 by Mark Ellis
Filed under Business
Superstitious employees of Southwest Airlines must be wondering if the aviation industry is cursed: although the company has enjoyed a recent drop in the price of fuel, the drop has also been met with shrinking revenue that almost completely mitigates any benefit gained from the falling fuel prices.
Image: Flickr
That is not the only source of consternation for Southwest Airlines. The swine flu panic sweeping the world has cut travel demands as worried travelers stay home instead. The economic recession has also done few favors for Southwest Airlines as would-be vacationers instead plan cheaper outings that do not include air travel.
Although Southwest Airlines has posted three straight quarterly losses, the company plans to expand service to several airports across the country, hoping to increase revenue. Only time will tell if Southwest’s efforts to creep back up out of the red will be successful.
Image: Jim Frazier
